CRITERIA: The Organization is required to implement internal controls over financial reporting to ensure compliance with federal program requirements and to ensure these controls are operating as designed. CONDITION: The Organization does not have adequate segregation of duties for financial reporting purposes. CONTEXT: During dual purpose tests of controls and compliance over direct disbursements, we noted that there is no review and approval process of expense allocations, such as payroll and overhead. While a detailed review process exists for expense allocations made by subrecipients, no such review process exists for the Organization’s own expense allocations. EFFECT: This circumstance increases the opportunity for errors and misstatements to go undetected. CAUSE: This situation is created by limits on staffing and by insufficient resources to retain the number of staff necessary to obtain the optimum level of segregation and oversight. RECOMMENDATION: We recommend that management continue to look for opportunities to improve segregation among staff involved with financial reporting, and to implement processes to ensure that expense allocations are verified for accuracy. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding. REPEAT FINDING: This finding was reported in the Schedule of Findings and Questioned Costs for the year ended June 30, 2022 as item 2022-02.
Criteria: The Organization is required to implement internal controls over financial reporting to ensure compliance with federal program requirements and to ensure these controls are operating as designed. CONDITION: The Organization did not follow its documented procedures for allocating costs. CONTEXT: Documented procedures state that actual hours worked for each month are used as the basis for expense allocations. During dual purpose tests of controls and compliance over direct disbursements, we noted that spreadsheets had been updated to allocate costs based on annual hours instead of monthly hours. Additionally, the basis for the annual hours used could not be determined. EFFECT: This circumstance may result in improper expense allocations to federal grants. CAUSE: The former Finance Director changed the allocation spreadsheets without proper approvals. RECOMMENDATION: The Organization ceased to be the administrative agent for Virginia Career Works - Piedmont Region, the recipient of the federal grants, effective June 30, 2023. We recommend that management communicate the necessary changes to the new organization. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding.
CRITERIA: The Organization is required to implement internal controls over financial reporting to ensure compliance with federal program requirements and to ensure these controls are operating as designed. CONDITION: The Organization does not have adequate segregation of duties for financial reporting purposes. CONTEXT: During dual purpose tests of controls and compliance over direct disbursements, we noted that there is no review and approval process of expense allocations, such as payroll and overhead. While a detailed review process exists for expense allocations made by subrecipients, no such review process exists for the Organization’s own expense allocations. EFFECT: This circumstance increases the opportunity for errors and misstatements to go undetected. CAUSE: This situation is created by limits on staffing and by insufficient resources to retain the number of staff necessary to obtain the optimum level of segregation and oversight. RECOMMENDATION: We recommend that management continue to look for opportunities to improve segregation among staff involved with financial reporting, and to implement processes to ensure that expense allocations are verified for accuracy. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding. REPEAT FINDING: This finding was reported in the Schedule of Findings and Questioned Costs for the year ended June 30, 2022 as item 2022-02.
Criteria: The Organization is required to implement internal controls over financial reporting to ensure compliance with federal program requirements and to ensure these controls are operating as designed. CONDITION: The Organization did not follow its documented procedures for allocating costs. CONTEXT: Documented procedures state that actual hours worked for each month are used as the basis for expense allocations. During dual purpose tests of controls and compliance over direct disbursements, we noted that spreadsheets had been updated to allocate costs based on annual hours instead of monthly hours. Additionally, the basis for the annual hours used could not be determined. EFFECT: This circumstance may result in improper expense allocations to federal grants. CAUSE: The former Finance Director changed the allocation spreadsheets without proper approvals. RECOMMENDATION: The Organization ceased to be the administrative agent for Virginia Career Works - Piedmont Region, the recipient of the federal grants, effective June 30, 2023. We recommend that management communicate the necessary changes to the new organization. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding.
CRITERIA: The Organization is required to implement internal controls over financial reporting to ensure compliance with federal program requirements and to ensure these controls are operating as designed. CONDITION: The Organization does not have adequate segregation of duties for financial reporting purposes. CONTEXT: During dual purpose tests of controls and compliance over direct disbursements, we noted that there is no review and approval process of expense allocations, such as payroll and overhead. While a detailed review process exists for expense allocations made by subrecipients, no such review process exists for the Organization’s own expense allocations. EFFECT: This circumstance increases the opportunity for errors and misstatements to go undetected. CAUSE: This situation is created by limits on staffing and by insufficient resources to retain the number of staff necessary to obtain the optimum level of segregation and oversight. RECOMMENDATION: We recommend that management continue to look for opportunities to improve segregation among staff involved with financial reporting, and to implement processes to ensure that expense allocations are verified for accuracy. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding. REPEAT FINDING: This finding was reported in the Schedule of Findings and Questioned Costs for the year ended June 30, 2022 as item 2022-02.
Criteria: The Organization is required to implement internal controls over financial reporting to ensure compliance with federal program requirements and to ensure these controls are operating as designed. CONDITION: The Organization did not follow its documented procedures for allocating costs. CONTEXT: Documented procedures state that actual hours worked for each month are used as the basis for expense allocations. During dual purpose tests of controls and compliance over direct disbursements, we noted that spreadsheets had been updated to allocate costs based on annual hours instead of monthly hours. Additionally, the basis for the annual hours used could not be determined. EFFECT: This circumstance may result in improper expense allocations to federal grants. CAUSE: The former Finance Director changed the allocation spreadsheets without proper approvals. RECOMMENDATION: The Organization ceased to be the administrative agent for Virginia Career Works - Piedmont Region, the recipient of the federal grants, effective June 30, 2023. We recommend that management communicate the necessary changes to the new organization. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding.
CRITERIA: The Organization is required to implement internal controls over financial reporting to ensure compliance with federal program requirements and to ensure these controls are operating as designed. CONDITION: The Organization does not have adequate segregation of duties for financial reporting purposes. CONTEXT: During dual purpose tests of controls and compliance over direct disbursements, we noted that there is no review and approval process of expense allocations, such as payroll and overhead. While a detailed review process exists for expense allocations made by subrecipients, no such review process exists for the Organization’s own expense allocations. EFFECT: This circumstance increases the opportunity for errors and misstatements to go undetected. CAUSE: This situation is created by limits on staffing and by insufficient resources to retain the number of staff necessary to obtain the optimum level of segregation and oversight. RECOMMENDATION: We recommend that management continue to look for opportunities to improve segregation among staff involved with financial reporting, and to implement processes to ensure that expense allocations are verified for accuracy. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding. REPEAT FINDING: This finding was reported in the Schedule of Findings and Questioned Costs for the year ended June 30, 2022 as item 2022-02.
Criteria: The Organization is required to implement internal controls over financial reporting to ensure compliance with federal program requirements and to ensure these controls are operating as designed. CONDITION: The Organization did not follow its documented procedures for allocating costs. CONTEXT: Documented procedures state that actual hours worked for each month are used as the basis for expense allocations. During dual purpose tests of controls and compliance over direct disbursements, we noted that spreadsheets had been updated to allocate costs based on annual hours instead of monthly hours. Additionally, the basis for the annual hours used could not be determined. EFFECT: This circumstance may result in improper expense allocations to federal grants. CAUSE: The former Finance Director changed the allocation spreadsheets without proper approvals. RECOMMENDATION: The Organization ceased to be the administrative agent for Virginia Career Works - Piedmont Region, the recipient of the federal grants, effective June 30, 2023. We recommend that management communicate the necessary changes to the new organization. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding.
CRITERIA: The Organization is required to implement internal controls over financial reporting to ensure compliance with federal program requirements and to ensure these controls are operating as designed. CONDITION: The Organization does not have adequate segregation of duties for financial reporting purposes. CONTEXT: During dual purpose tests of controls and compliance over direct disbursements, we noted that there is no review and approval process of expense allocations, such as payroll and overhead. While a detailed review process exists for expense allocations made by subrecipients, no such review process exists for the Organization’s own expense allocations. EFFECT: This circumstance increases the opportunity for errors and misstatements to go undetected. CAUSE: This situation is created by limits on staffing and by insufficient resources to retain the number of staff necessary to obtain the optimum level of segregation and oversight. RECOMMENDATION: We recommend that management continue to look for opportunities to improve segregation among staff involved with financial reporting, and to implement processes to ensure that expense allocations are verified for accuracy. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding. REPEAT FINDING: This finding was reported in the Schedule of Findings and Questioned Costs for the year ended June 30, 2022 as item 2022-02.
Criteria: The Organization is required to implement internal controls over financial reporting to ensure compliance with federal program requirements and to ensure these controls are operating as designed. CONDITION: The Organization did not follow its documented procedures for allocating costs. CONTEXT: Documented procedures state that actual hours worked for each month are used as the basis for expense allocations. During dual purpose tests of controls and compliance over direct disbursements, we noted that spreadsheets had been updated to allocate costs based on annual hours instead of monthly hours. Additionally, the basis for the annual hours used could not be determined. EFFECT: This circumstance may result in improper expense allocations to federal grants. CAUSE: The former Finance Director changed the allocation spreadsheets without proper approvals. RECOMMENDATION: The Organization ceased to be the administrative agent for Virginia Career Works - Piedmont Region, the recipient of the federal grants, effective June 30, 2023. We recommend that management communicate the necessary changes to the new organization. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding.
CRITERIA: The Organization is required to implement internal controls over financial reporting to ensure compliance with federal program requirements and to ensure these controls are operating as designed. CONDITION: The Organization does not have adequate segregation of duties for financial reporting purposes. CONTEXT: During dual purpose tests of controls and compliance over direct disbursements, we noted that there is no review and approval process of expense allocations, such as payroll and overhead. While a detailed review process exists for expense allocations made by subrecipients, no such review process exists for the Organization’s own expense allocations. EFFECT: This circumstance increases the opportunity for errors and misstatements to go undetected. CAUSE: This situation is created by limits on staffing and by insufficient resources to retain the number of staff necessary to obtain the optimum level of segregation and oversight. RECOMMENDATION: We recommend that management continue to look for opportunities to improve segregation among staff involved with financial reporting, and to implement processes to ensure that expense allocations are verified for accuracy. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding. REPEAT FINDING: This finding was reported in the Schedule of Findings and Questioned Costs for the year ended June 30, 2022 as item 2022-02.
Criteria: The Organization is required to implement internal controls over financial reporting to ensure compliance with federal program requirements and to ensure these controls are operating as designed. CONDITION: The Organization did not follow its documented procedures for allocating costs. CONTEXT: Documented procedures state that actual hours worked for each month are used as the basis for expense allocations. During dual purpose tests of controls and compliance over direct disbursements, we noted that spreadsheets had been updated to allocate costs based on annual hours instead of monthly hours. Additionally, the basis for the annual hours used could not be determined. EFFECT: This circumstance may result in improper expense allocations to federal grants. CAUSE: The former Finance Director changed the allocation spreadsheets without proper approvals. RECOMMENDATION: The Organization ceased to be the administrative agent for Virginia Career Works - Piedmont Region, the recipient of the federal grants, effective June 30, 2023. We recommend that management communicate the necessary changes to the new organization. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding.