Flint Water Service Line Replacement Expenditures - 761-3017-19

Description of Agency

On January 5, 2016, Governor Rick Snyder declared a state of emergency for Genesee County (referred to as the Flint declaration of emergency) due to the ongoing health and safety issues caused by elevated lead levels in the City of Flint’s drinking water. On March 28, 2017, a U.S. district judge approved a settlement agreement that required the State to allocate $87 million and set aside an additional $10 million in reserves to pay for the replacement of residential lead and galvanized water service lines in the City of Flint. Public Act 340 of 2016 requires the Auditor General to conduct a preliminary audit of the City of Flint’s use of the initial $10 million of the $25 million appropriated for service line removal based on a signed grant agreement between the State and the City of Flint. The settlement agreement required the State to request the Auditor General to conduct annual financial and performance audits of the Department of Environmental Quality’s (DEQ’s) administration of the payments or reimbursements described in paragraph 23 of the agreement. This audit addresses both requirements and is our second report on the expenditures of these funds.

Audit Objectives

  1. To determine the appropriateness of DEQ’s administrative process to issue payments or reimbursements for the Flint water service line replacements.
  2. To determine the appropriateness of DEQ’s expenditure of the Flint water service line replacement appropriations as of March 31, 2019.
  3. To report DEQ’s expenditures of the Flint water service line replacement appropriations.

Timing

We estimate a release date in Mid 2019

Information Technology Fund and IT Billings - 071-0137-17

Description of Agency

The Information Technology Fund is an internal service fund which was created by administrative decision to provide telecommunication and information technology services for State agencies. User agencies are billed for the cost of such services based on rates established to cover actual costs.

Audit Objectives

  1. To assess the effectiveness of DTMB’s administration of the Information Technology (IT) Fund.

  2. To assess the effectiveness of DTMB’s efforts to ensure that billings to its customers reflect the appropriate costs of those services provided through the IT Fund.

Timing

We estimate a release date in Early 2019

Prisoner Security Classification and Recommended Programming - 471-0350-18

Description of Agency

Security Classification – The Department of Corrections (DOC) uses a prisoner security classification process to determine where a prisoner shall be housed. The classification process has been designed to ensure that each classification decision is made in a manner that is consistent, fair, and fiscally responsible, while recognizing that the primary responsibility and overall goal is to protect the public, employees, and prisoners. The security classification level is based on the confinement level (the level of physical restraint necessary to reduce escape risk) and the management level (the level of physical restraint necessary to maintain good institutional order to protect prisoners and staff from harm).

Recommended Programming – DOC assesses each prisoner’s risks, needs, and strengths in order to provide responsive treatment, programming, and opportunities throughout the prisoner’s sentence to provide the prisoner with the tools to make a successful transition back into the community upon release.

As of August 1, 2018, DOC operated 31 prisons housing approximately 39,700 prisoners. During the period October 1, 2015 through July 31, 2018, DOC completed 185,875 security assessments and created 131,321 program recommendations.

Audit Objectives

  1. To assess the sufficiency of DOC’s process for assigning security classifications.

  2. To assess the sufficiency of DOC’s efforts to ensure that prisoners receive recommended programming.


Timing

We estimate a release date in Early 2019

Geagley Laboratory - 791-0125-18

Audit Objectives

  • The audit is currently in planning and the audit objectives are not yet finalized.

Facility Closures and Consolidations - 471-0375-11F

Description of Agency

As of December 31, 2015, the Department of Corrections (DOC) housed 42,628 prisoners in 33 correctional facilities and, in fiscal year 2016, DOC expended $1.48 billion for prisoner-related costs. From December 31, 2015 through August 1, 2018, DOC’s prisoner population decreased by 2,962 prisoners. The State closed Pugsley Correctional Facility in September 2016 and West Shoreline Correctional Facility in March 2018 with Ojibway Correctional Facility scheduled for closure in December 2018. In fiscal year 2017, DOC expended $1.47 billion for prisoner-related costs.

Timing

We estimate a release date in December 2018

Michigan Military Retirement Plan - 071-0158-19

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Michigan State Police Retirement System - 071-0154-19

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Michigan Judges’ Retirement System - 071-0153-19

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Michigan Public School Employees’ Retirement System - 071-0152-19

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

State of Michigan 457 Plan - 071-0157-19

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

State of Michigan 401K Plan - 071-0156-19

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Michigan Legislative Retirement System - 900-0140-19

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Michigan State Employees’ Retirement System - 071-0151-19

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

State of Michigan Comprehensive Annual Financial Report - 071-0010-19

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Michigan Economic Development Corporation - 186-0406-19

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Michigan Strategic Fund - 186-0401-19

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Community and Noncommunity Water Supplies - 761-0320-15F

Description of Agency

The Office of Drinking Water and Municipal Assistance (ODWMA) is responsible for public drinking water and environmental health regulatory programs. There are approximately 11,000 public drinking water supplies in Michigan. Approximately 1,400 are community water supplies that furnish drinking water year-round to residential populations. The remaining 9,600 are defined as noncommunity water supplies, which provide water in places where people do not remain for long periods of time. ODWMA and contracted local health departments are responsible for enforcing compliance with community water supply and noncommunity water supply requirements, respectively, of the Michigan Drinking Water Act (Act 399 of 1976, as amended).

Timing

We estimate a release date in January 2019

Automobile Theft Prevention Authority - 551-0108-18

Description of Agency

The Automobile Theft Prevention Authority (ATPA) was established by Public Act 10 of 1986 to reduce motor vehicle theft in the State of Michigan. The ATPA is funded by an annual assessment on automobile insurance companies at a rate of $1 per motor vehicle, including private passenger and commercial vehicles. The ATPA board awards annual grants to law enforcement agencies, prosecutors’ offices, and nonprofit organizations for four main programs: investigation, apprehension, prosecution, and prevention. In fiscal year 2017, the ATPA received $7.3 million in assessments and issued $5.5 million in grants


Audit Objectives

  1. To assess the effectiveness of ATPA in administering grants for automobile theft prevention programs.

  2. To determine the appropriateness of ATPA expenditures.


Timing

We estimate a release date in December 2018

Office of the Great Lakes - 751-0321-18

Description of Agency

The Office of the Great Lakes (OGL), Department of Natural Resources, leads efforts to protect and restore Michigan’s waters. OGL works with partners to support sustainable communities, restore degraded waters, manage water quality and quantity, and prevent aquatic invasive species. The U.S. and Canada entered into the Great Lakes Water Quality Agreement in 1987 to restore 43 Areas of Concern (AOC), 14 of which are located in Michigan. The Coastal Management Program was established in 1978 and focuses on habitat, hazard management, water quality, public access, and community development. OGL oversees and monitors grants to coastal governments, nonprofit organizations, and universities. For fiscal years 2016 and 2017, OGL expended $5.5 million and $4.8 million, respectively.

Audit Objectives

  1. To assess the effectiveness of OGL’s efforts to manage Michigan’s AOC Program.

  2. To assess OGL’s compliance with requirements of the coastal management cooperative agreement.


Timing

We estimate a release date in Early 2019

Oversight of Health Professions - 641-0430-14F

Description of Agency

The mission of the Bureau of Professional Licensing (BPL) is to protect, preserve, and improve the health, safety, and welfare of Michigan’s citizens through the licensing and regulation of health professionals. BPL performs oversight of health professionals to ensure compliance with the Public Health Code, which includes issuing licenses and registrations, processing allegations, investigating authorized allegations, processing complaints, monitoring sanctions, maintaining a controlled substance subscription database, and administering the Health Professional Recovery Program. As of June 30, 2018, BPL had 191 employees that performed oversight activities of health professions.

Timing

We estimate a release date in January 2019

Office of Educator Excellence - 313-0140-18

Audit Objectives

  • The audit is currently in planning and the audit objectives are not yet finalized.

MILogin - 071-0570-18

Description of Agency

MILogin is the State’s identity, credential, and access management solution. MILogin manages access to State of Michigan (SOM) Web-based applications and services by providing single sign-on (SSO), user authentication, and account/identity management services for internal (SOM workers) and external (third-party and citizen) users. MILogin provides centralized administration and synchronization of user identities to enable the granting and removal of user account access for State systems. MILogin allows employees to log in one time to access multiple State applications. In addition, MILogin provides citizens with the ability to self-manage their user accounts and passwords. MILogin is managed by the Department of Technology, Management, and Budget’s (DTMB’s) Center for Shared Solutions – Enterprise Data and Identity Management. As of March 2018, MILogin provided access to 188 application connections across 14 State agencies.


Audit Objectives

  1. To assess the effectiveness of controls over MILogin administration and end user account management.

  2. To assess the effectiveness of DTMB’s efforts to ensure that MILogin properly authorizes application access.

  3. To assess the effectiveness of DTMB’s controls to ensure the availability of MILogin.


Timing

We estimate a release date in Early 2019

Regulatory Monitoring Division - 231-0220-18

Description of Agency

The Regulatory Monitoring Division’s (RMD’s) mission is to maintain effective oversight of licensed vehicle dealers, repair facilities, and mechanics. To accomplish its mission, RMD completes inspections of licensed vehicle dealers and repair facilities (including reviewing mechanic certifications) and investigates consumer complaints related to those entities. RMD attempts to inspect each vehicle dealer and repair facility every four years and to investigate consumer complaints within 150 days of receiving the complaint. As of May 23, 2018, RMD reported that the State had 5,647 licensed vehicle dealers; 8,986 licensed repair facilities; and 31,687 licensed mechanics. During calendar year 2017, RMD completed 2,288 complaint investigations.

Audit Objectives

    1. To assess the effectiveness of RMD’s efforts to inspect vehicle dealers and repair facilities.

    2. To assess the effectiveness of RMD’s efforts to document, investigate, and resolve consumer complaints.

Timing

We estimate a release date in December 2018

Adult Education Program - 186-0720-18

Description of Agency

The Adult Services Division (ASD), Department of Talent and Economic Development, administers the Adult Education Program. This Program provides an opportunity for adults to improve or achieve education levels equivalent to those of high school graduates. Instruction is tailored to meet the individual needs of adult students, and standardized tests identify existing skill levels, appropriate instruction, and academic gains due to instruction. The Program serves approximately 35,000 students each year. In fiscal year 2017, Michigan allocated $25 million from State appropriations and $11 million from federal grant money to over 130 providers of adult education.


Audit Objectives

  1. To assess the effectiveness of ASD’s efforts to monitor the Adult Education Program.

  2. To assess ASD’s compliance with certain rules and regulations.

  3. To assess the appropriateness of ASD’s funding to eligible fiscal agencies and providers.


Timing

We estimate a release date in Mid 2019

Michigan State Disbursement Unit, Office of Child Support - 431-0142-18

Description of Agency

The Office of Child Support (OCS), Michigan Department of Health and Human Services (MDHHS), contracts with a vendor to operate the Michigan State Disbursement Unit (MiSDU). The vendor centrally collects and disburses child support remittances in accordance with federal child support enforcement program requirements. MiSDU collected and processed remittances totaling $2.6 billion from June 1, 2016 through May 31, 2018. This performance audit is required by Section 400.238(3) of the Michigan Compiled Laws.

Audit Objectives

  1. To assess the effectiveness of OCS’s efforts to ensure the accurate and timely disbursement of child support collections.
  2. To assess the effectiveness of OCS’s efforts in monitoring the accuracy and completeness of the bank accounts used to record child support financial activities.

Timing

We estimate a release date in Early 2019

SIGMA – Selected Application Controls and Service Level Requirements - 071-0595-18

Description of Agency

The Statewide Integrated Governmental Management Applications (SIGMA) is an enterprise resource planning (ERP) solution for the State of Michigan that is owned by the State Budget Office (SBO). SIGMA administration and security are the responsibility of SBO’s SIGMA team in conjunction with the Office of Financial Management (OFM) and State agencies. SIGMA fully or partially replaced over 60 systems in State government operations, including accounting (MAIN), timekeeping (DCDS), procurement (Buy4Michigan), and other agency specific applications. SIGMA consists of various modules such as Financial, Human Resource Management, Security and Administration, and Business Intelligence. SIGMA is also capable of cost accounting and cost allocation, grant lifecycle management, asset and inventory management, and performance budgeting. Project SIGMA cost the State $143,275,720 as of March 31, 2018, with a total budget of $168,472,800 since project inception in fiscal year 2013.

Audit Objectives

  1. To assess the effectiveness of selected access controls over SIGMA.

  2. To assess the effectiveness of the State’s efforts to ensure the completeness and accuracy of selected data within SIGMA.

  3. To assess the State and vendor’s compliance with the service level requirements within the SIGMA contract.


Timing

We estimate a release date in Early 2019

Child Welfare Caseloads - 431-2785-18

Description of Agency

The Michigan Department of Health and Human Services (MDHHS) administers the State’s child welfare programs and has established maximum caseloads for over 4,000 staff who perform critical tasks related to children’s protective services, foster care, adoption, and child welfare licensing. These staff are located in local county offices and private child placing agencies throughout the State. Ensuring that child welfare staff have manageable workloads is instrumental in promoting the delivery of quality services and improving outcomes for children and families.

Audit Objectives

To assess the sufficiency of MDHHS’s central office efforts to monitor selected child welfare staff caseloads.

Timing

We estimate a release date in Early 2019

Children of Veterans Tuition Grant Program - 271-0311-18

Description of Agency

Public Act 248 of 2005 established the Children of Veterans Tuition Grant Program (CVTGP) within the Department of Treasury. CVTGP provides up to $2,800 per academic year of undergraduate tuition assistance to children of eligible deceased or disabled Michigan veterans, with a lifetime maximum of $11,200. During fiscal year 2017, CVTGP made tuition payments totaling approximately $1.1 million to eligible Michigan educational institutions on behalf of approximately 450 students.

Audit Objective

To assess the effectiveness of the Department of Treasury’s administration of CVTGP.

Timing

We estimate a release date in Early 2019

Michigan Veterans’ Trust Fund, Michigan Veterans Affairs Agency - 511-0410-18

Description of Agency

The Emergency Grant Program (EGP) is administered by the Michigan Veterans Affairs Agency (MVAA), Department of Military and Veterans Affairs, under the oversight of the Michigan Veterans’ Trust Fund Board of Trustees. EGP is funded by the Michigan Veterans’ Trust Fund, which was established under Public Act 9 of 1946. EGP payments are processed by MVAA on behalf of qualified veterans, their spouses, and dependents to assist with unexpected, temporary financial hardships. During fiscal year 2017, MVAA made payments totaling approximately $760,000 on behalf of approximately 700 EGP applicants.

Audit Objectives

  1. To assess MVAA’s compliance with Michigan Veterans’ Trust Fund legislative reporting requirements.

  2. To assess the sufficiency of MVAA’s efforts to administer EGP.


Timing

We estimate a release date in Early 2019

Michigan National Guard Tuition Assistance Program - 511-0400-18

Description of Agency

Public Act 259 of 2014 established the Michigan National Guard State Tuition Assistance Program (MiNGSTAP) within the Department of Military and Veterans Affairs (DMVA). MiNGSTAP provides up to $6,000 of tuition assistance to eligible members of the Michigan National Guard who attend a public or private college, university, vocational school, technical school, or trade school located in Michigan. During fiscal years 2016 and 2017, MiNGSTAP provided 1,951 students with assistance totaling $9.7 million. MiNGSTAP is 100% funded by General Fund general purpose revenues.

Audit Objective

To assess the effectiveness of DMVA’s administration of MiNGSTAP.

Timing

We estimate a release date in Early 2019

Administration of Medicaid Payments to Nursing Facilities for Long-Term Care - 391-0570-18

Description of Agency

The Michigan Department of Health and Human Services’ (MDHHS’s) Long-Term Care Reimbursement Division administers the Medicaid cost reporting, rate setting, and reimbursement settlement processes for long-term care provided by nursing facilities. MDHHS coordinates the annual review of cost reports and sets the Medicaid long-term care reimbursement per diem rates for nursing facility providers. As of October 1, 2017, MDHHS provided long-term care payments to 369 nursing homes, 35 county medical care facilities, 20 inpatient hospitals with long-term care units, and 10 nursing homes with long-term care ventilator units. During fiscal years 2016 and 2017, MDHHS expended $1.7 billion annually for long-term care provided by nursing facilities.

Audit Objectives

  1. To assess the effectiveness of MDHHS’s efforts to administer the long-term care rate setting process.

  2. To assess the effectiveness of MDHHS’s efforts to administer the long-term care audit process.

  3. To assess the effectiveness of MDHHS’s efforts to administer the long-term care cost settlement process.

 

Timing

We estimate a release date in Early 2019

Clean Michigan Initiative Environmental Protection Programs - 761-0217-18

Description of Agency

The Department of Environmental Quality (DEQ) administers environmental protection programs funded with Clean Michigan Initiative (CMI) bond proceeds. These programs include reponse activities at contaminated sites, redevelopment of waterfronts, remediation of contaminated lakes and rivers, nonpoint source pollution prevention and control, water quality monitoring, and pollution prevention efforts. DEQ’s environmental protection programs account for $570 million (84%) of the total $675 million of CMI bonds. During our audit period, DEQ expended $18.3 million of CMI funds. This performance audit is required by Section 324.19615 of the Michigan Compiled Laws.


Audit Objectives

  1. To assess the effectiveness of DEQ’s efforts to ensure that the use of CMI funds complies with laws, regulations, and contract requirements.

  2. To assess DEQ’s compliance with CMI program reporting requirements.

  3. To compile and report data for programs eligible for CMI funding.


Timing

We estimate a release date in December 2018

Grand Rapids Home for Veterans - 511-0170-18

Description of Agency

The Grand Rapids Home for Veterans provides nursing care and domiciliary services to military veterans and widows, widowers, spouses, former spouses, and parents of State veterans. The mission of the Home is to provide compassionate, quality, interdisciplinary care for the members to achieve their highest potential of independence, self-worth, wellness, and dignity. As of February 28, 2018, the Home had 259 members receiving nursing care and 24 members residing in the domiciliary units. The Home expended $46.1 million for fiscal year 2017 ($22.8 million from State funding, $16.6 million from federal funding, and $6.7 million from member assessments and private donations).

Audit Objectives

  1. To assess the sufficiency of the Home’s provision of member care services.

  2. To assess the effectiveness of the Home’s administration of pharmaceuticals.

  3. To assess the effectiveness of the Home’s management of complaints and incidents regarding member care.

  4. To assess the sufficiency of controls over selected business office operations.


Timing

We estimate a release date in Early 2019

Aging and Adult Services Agency - 391-0645-18

Description of Agency

The Aging and Adult Services Agency (AASA) is Michigan’s designated State unit on aging, formed under the Older Michiganians Act of 1981. AASA operates under the authority of the federal Older Americans Act, which was signed into law in 1965 to meet the diverse needs of the growing number of older adults in the United States. AASA’s mission is to provide Statewide leadership, direction, and resources to support Michigan’s aging, adult services, and disability networks, with the aim of helping residents live with dignity and purpose. Michigan’s aging network is composed of a partnership between AASA, 16 regional area agencies on aging (AAAs), and more than 1,300 local service providers offering older and vulnerable adult and family caregiver services. AASA is responsible for addressing older adult issues; facilitating and funding programs and services for older adults; and supervising, monitoring, assessing, and evaluating the services provided by AAAs. For fiscal years 2016 and 2017, AASA expended $94.1 million and $93.9 million, respectively.


Audit Objectives

  1. To assess the effectiveness of AASA’s efforts to monitor agencies that provided select services to older adults in Michigan.
  2. To assess the effectiveness of AASA’s efforts in evaluating its performance.
  3. To assess the effectiveness of selected Michigan Department of Health and Human Services and Department of Technology, Management, and Budget security and access controls over the Aging Information System.

 

Timing

We estimate a release date in Early 2019

Pension and OPEB Census Data Testing - 071-0163-18

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Executive Order 2016-24, Enterprise Information Management - 071-1595-18

Description of Agency

Executive Order (EO) 2016-24 was signed by Governor Snyder on December 21, 2016. The EO gives the Department of Technology, Management, and Budget (DTMB) primary responsibility for the implementation of an Enterprise Information Management Program (EIM) and identifies the projects and goals of the program. The EO also requires the creation of an EIM steering committee. The EO further requires that each State department establish an information management governance board and designate a chief data steward. Projects and goals of the EIM shall include establishment of a single Internet sign-on, improved quality of data and service delivery, and cross-agency data sharing.

Audit Objectives

  1. To assess the effectiveness of DTMB’s efforts to comply with EO 2016-24.

  2. To provide a status of the State’s compliance with EO 2016-24.


Timing

We estimate a release date in December 2018

Michigan Agency for Energy - 641-0171-18

Description of Agency

In March 2015, Executive Order (EO) No. 2015-10 created the Michigan Agency for Energy (MAE). This EO, among other things, transferred activity related to administrative services, customer assistance (including investigation and compliance), energy emergency management, low income energy assistance programs, and energy markets from the Michigan Public Service Commission (MPSC) to MAE. MAE serves as the coordinating office for all State departments and is responsible for analyzing and making recommendations to the Governor on proposed programs and policies related to energy. MAE’s mission is to advance an adaptable, affordable, reliable, and environmentally protective energy future for Michigan. During fiscal year 2017, MAE expended $8.5 million and had 52.6 full-time equated staff.

Audit Objectives

  1. To assess the effectiveness of MAE’s efforts to ensure that the customers of Michigan’s regulated utilities received timely and appropriate responses to their complaints.

  2. To assess MAE’s efforts to ensure regulated utilities’ compliance with the quarterly reporting requirements.

  3. To report on MAE’s use of public utility assessment funds.


Timing

We estimate a release date in December 2018

Maintenance Services Section - 591-0160-18

Description of Agency

The Michigan Department of Transportation (MDOT) is responsible for the maintenance of Michigan’s 9,669-mile State highway system, which comprises all M, I, and U.S. routes. MDOT’s Maintenance Services Section provides highly specialized skills, technical support, and training assistance to MDOT regional offices, transportation service centers, and maintenance garages in an effort to provide a safe roadway for the traveling public, to maintain the serviceability of the highway system, and to support facilities while preserving the State’s investment in its transportation infrastructure. For fiscal years 2016 and 2017, MDOT incurred annual maintenance expenditures totaling $298 million.

Audit Objectives

  1. To assess the sufficiency of MDOT’s efforts to maintain the State’s transportation infrastructure.

  2. To assess the effectiveness of MDOT’s efforts in processing accident damage claims.

 

Timing

We estimate a release date in December 2018

Cyber Schools - 313-0225-18

Description of Agency

A cyber school is a school of excellence, authorized under Section 380.552 of the Michigan Compiled Laws, that provides full-time instruction to pupils through virtual learning or otherwise on a computer or other technology, which instruction and learning may be remote from a school facility. Michigan’s first cyber schools began operation during the 2010-11 school year. During the 2016-17 school year, 13 cyber schools enrolled more than 15,000 students from across the State. For the 2016-17 school year, cyber schools received $77.8 million of per pupil foundation allowance through the State School Aid Fund.

Audit Objectives

  1. To assess the sufficiency of the Michigan Department of Education’s (MDE’s) process to ensure that contracts establishing cyber schools meet statutory requirements.

  2. To assess the sufficiency of MDE’s monitoring of cyber school authorizers.

  3. To assess the effectiveness of MDE’s efforts to monitor and evaluate the virtual learning provided by cyber schools.

  4. To compile information on the State’s funding of cyber schools and their reported costs.


Timing

We estimate a release date in Early 2019

Michigan Public Safety Communications System (MPSCS) - 551-0145-18

Description of Agency

MPSCS’s mission is to provide public safety agencies of all disciplines (fire, police, hospital, etc.) a standards-based Statewide interoperable communications system and a suite of connected tool sets from voice to data communication (radios, pagers, etc.). There are approximately 1,600 agencies that utilize MPSCS. Public Act 152 of 1929, as amended, indicates that the Director of the Department of Technology, Management, and Budget (DTMB) is responsible for the construction, implementation, operation, and maintenance of MPSCS. MPSCS services include installing system assets, processing maintenance work orders, overseeing system improvements by contractor, and overseeing agreements to allow expanded wireless telecommunications on State property managed by a contractor. As of September 30, 2017, DTMB-MPSCS had expenditures of $47.5 million and 100 employees.

Audit Objectives

  1. To assess the effectiveness of DTMB-MPSCS in monitoring contracts for system improvements and agreements to allow expanded wireless telecommunications on State property.
  2. To assess the effectiveness of DTMB-MPSCS in administering usage of its procurement cards.
  3. To assess the effectiveness of MPSCS agencies in monitoring the Enterprise Asset Management system (EAM) for accuracy.


Timing

We estimate a release date in Early 2019

Workers’ Compensation Agency - 641-0470-18

Description of Agency

The mission of the Workers’ Compensation Agency (WCA) is to efficiently administer the Workers’ Disability Compensation Act of Michigan and provide prompt, courteous, and impartial service to all customers. Workers’ compensation provides wage replacement, medical, and rehabilitation benefits to employees who suffer work-related injuries. Most employers purchase a workers’ compensation insurance policy from a private insurance company or are authorized to operate as self-insurers. WCA, including the Funds Administration Division, had 62 full-time equated employees and expended $9.7 million in fiscal year 2017.

Audit Objectives

  1. To assess the effectiveness of WCA’s efforts to ensure employer compliance with selected requirements of the Workers’ Disability Compensation Act.

  2. To assess the effectiveness of WCA’s oversight of workers’ compensation claims.

  3. To assess the effectiveness of WCA’s administration of select funds.


Timing

We estimate a release date in Early 2019

Office of Children’s Ombudsman - 071-0176-17

Description of Agency/Program/System

The mission of the Office of Children’s Ombudsman (OCO) is to ensure the safety and well-being of Michigan’s children in need of foster care, adoption, and protective services and to promote public confidence in the child welfare system. This will be accomplished through independently investigating complaints and child deaths, advocating for children, and recommending changes to improve child welfare law, policy, and practice for the benefit of current and future generations.

Audit Objectives

  1. To assess the effectiveness of OCO’s efforts to properly address complaints and other communications.
  2. To assess the sufficiency of OCO’s efforts to conduct investigations of child welfare complaints and deaths.
  3. To assess whether OCO sufficiently reported selected information to designated parties.

Timing

We estimate a release date in Early 2019

Pharmaceutical Costs - 471-0325-17

Description of Agency/Program/System

Within the Department of Corrections (DOC), the Bureau of Health Care Services is responsible for coordinating medical services, including pharmaceutical operations, throughout the State-run prison system. DOC’s goal is to provide the greatest amount of public protection while making the most efficient use of the State’s resources. As of August 2017, DOC had 31 correctional facilities and was responsible for the custody and safety of 40,187 prisoners. Pharmaceutical costs for fiscal year 2016 and October 1 through July 30, 2017 was $40,315,254.78 and $34,813,547.07, respectively.

Audit Objectives

  1. To assess the effectiveness of DOC’s internal control over prisoner pharmaceuticals.

  2. To assess the effectiveness of DOC’s efforts to manage prisoner pharmaceutical costs.


Timing

We estimate a release date in Early 2019

Rental Assistance and Homeless Solutions - 186-0220-17

Description of Agency

The Michigan State Housing Development Authority’s (MSHDA’s) Rental Assistance and Homeless Solutions (RAHS) works with local communities and teams to promote stable housing opportunities and confront issues facing low-income residents across Michigan. RAHS removes barriers for families and individuals working to overcome housing insecurity and achieve a better tomorrow by assisting those in need with housing, education, and community resources.

Audit Objectives

  1. To assess the effectiveness of MSHDA’s efforts in administering the Housing Choice Voucher Program.

  2. To assess the effectiveness of MSHDA’s efforts in administering the Family Self-Sufficiency Program.

  3. To assess the effectiveness of MSHDA’s efforts in administering the Emergency Solutions Grant Program.


Timing

We estimate a release date in December 2018

Medicaid Non-Emergency Transportation - 391-0715-17

Description of Agency

The Medicaid Non-Emergency Transportation (NEMT) Program’s purpose is to ensure transportation to and from medical appointments for eligible Medicaid beneficiaries. The Michigan Department of Health and Human Services (MDHHS) administers the program and provides non-emergency medical transportation to Medicaid beneficiaries who cannot otherwise afford a ride to medical appointments. The rides must be for medical purposes, including medical, dental, vision, mental health, or substance abuse appointments, or to the pharmacy.

Audit Objectives

  1. To assess the effectiveness of MDHHS’s efforts to administer select NEMT services.

  2. To assess the sufficiency of MDHHS’s efforts to measure beneficiary satisfaction with NEMT services.


Timing

We estimate a release date in Early 2019

Michigan Business Development Program - 186-0500-17

Description of Agency

The Michigan Business Development Program (MBDP) is an incentive program established to provide grants, loans, and other economic assistance to qualified businesses that make qualified investments or provide qualified new jobs in Michigan. MBDP is available through the Michigan Strategic Fund (MSF), in cooperation with the Michigan Economic Development Corporation.

Audit Objectives

  1. To assess the sufficiency of MSF’s due process for awarding MBDP projects.

  2. To assess the effectiveness of MSF’s efforts to monitor MBDP project agreement compliance.

  3. To assess MSF’s compliance with MBDP statutory reporting requirements.

  4. To assess the sufficiency of MSF’s efforts to evaluate MBDP’s economic development outcomes.


Timing

We estimate a release date in December 2018

Comprehensive Health Care Program – Oversight and Encounter Claim Integrity - 391-0702-17

Description of Agency

The Comprehensive Health Care Program was initiated as the mechanism for controlling costs and improving beneficiary care in Michigan’s Medicaid program. The Michigan Department of Health and Human Services (MDHHS) contracts with Medicaid Health Plans (MHPs) to provide health care and care management services to the Medicaid population.

During fiscal years 2015 and 2016, total capitated rate payments were approximately $7.4 and $8.0 billion dollars, respectively. As of May 1, 2017, there were approximately 1.8 million individuals enrolled in managed care through either the Medicaid or Healthy Michigan programs.

Audit Objectives

  1. To evaluate the sufficiency of MDHHS’s oversight efforts to ensure MHP-enrolled beneficiary access to medical care.

  2. To assess the sufficiency of MDHHS’s efforts to ensure that MHPs’ encounter claim data met selected Medicaid program criteria.

  3. To assess the sufficiency of MDHHS’s efforts to monitor the MHPs’ provider networks.


Timing

We estimate a release date in Early 2019

Virtual Learning in Traditional Public Schools - 313-0224-16

Description of Agency

Virtual learning is a method of receiving academic instruction online through a computer-based internet-connected learning environment. Michigan law allows students in grades 6 through 12 to enroll in up to two online courses in an academic term, semester, or trimester. In order to receive a high school diploma, Michigan students must have an online course or learning experience. Students are considered virtual learners if they take at least one online course in a school year. Virtual learning in traditional public schools (non-charter schools) may be offered at a supervised facility during the day as a scheduled class period or through self-scheduled learning where students have some control over time, location, and pace of their education. Virtual learners in traditional public schools can enroll in courses delivered by their school, an intermediate school district, other traditional public schools, Michigan Virtual School, or charter schools.

Audit Objectives

  1. To determine the effectiveness of the Michigan Department of Education’s (MDE’s) efforts to ensure that traditional public schools provided students with the online course or learning experience required to award a high school diploma.

  2. To assess the sufficiency of MDE’s efforts to ensure that traditional public schools provided students with the required access and support for online courses.

  3. To determine the sufficiency of MDE’s efforts to monitor and evaluate the virtual learning provided by traditional public schools.


Timing

We estimate a release date in Early 2019

Select Services Within the Bureau of Local Government Services - 271-0290-16

Description of Agency

The Bureau of Local Government Services provides various services to local units of government, including assisting the State Tax Commission in supervising the administration of State property tax laws; collecting certain taxes; reviewing and approving certain exemption applications; monitoring and approving local unit deficit elimination plans; auditing and overseeing the accounting and audits of local government; and reviewing applications for the issuance of debt.

Audit Objectives

    1. To assess the Local Government Financial Services Division’s effectiveness related to reviewing and conducting audits of local units of government.

    2. To assess the Local Government Financial Services Division’s effectiveness related to reviewing and approving issuance of debt and reviewing deficit elimination plans.

    3. To assess the Property Services Division’s effectiveness to ensure that taxes and credits for property of select public utilities are properly assessed, applied, and paid to the General Fund.

    4. To assess the Property Services Division’s effectiveness to ensure that local governments accurately and promptly pay select required taxes to the School Aid Fund.


    Timing

    We estimate a release date in January 2019

    Statewide Child Support Program – Establishment of Child Support Orders - 431-0701-15

    Description of Agency

    The Statewide Child Support Program was developed to improve self-sufficiency of families by requiring noncustodial parents to fulfill their continuing obligation to support their children and to collect child support to offset State and federal public assistance program costs. In Michigan, the Program operates through the cooperative efforts of three agencies: the Office of Child Support, Michigan Department of Health and Human Services; county prosecuting attorney offices; and Friend of the Court offices. The Office of Child Support is responsible for administering the Program on a Statewide basis.

    Audit Objective

    To assess the effectiveness of the Child Support Program’s efforts to establish child support cases and orders.

    Timing

    We estimate a release date in January 2019

    Child Placing Agencies - 431-2780-16

    Description of Agency

    Child placing agencies are a combination of public agencies and private contracted agencies, licensed by the Michigan Department of Health and Human Services (MDHHS), that deliver foster care, adoption, and other services for children in Michigan’s foster care system. The child placing agencies’ responsibilities include ensuring the safety, security, permanency, and well-being of the children for whom the agency provides services.

    Audit Objectives

      1. To assess MDHHS’s effectiveness in licensing child placing agencies.

     

      1. To determine the effectiveness of MDHHS’s efforts to monitor child placing agency service delivery.

     

    1. To assess the sufficiency of MDHHS’s efforts to report child welfare information applicable to child placing agency activities in accordance with selected State and federal requirements.

     

    Timing

    We estimate a release date in Early 2019


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