FAC Explorer

Audit 302122

FY End
2022-06-30
Total Expended
$10.12M
Findings
238
Programs
16
Organization: Michigan Works! Southeast Consortium (MI)
Year: 2022 Accepted: 2024-04-01
Auditor: Roslund Prestage & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
391715 2022-004 Significant Deficiency Yes A
391716 2022-004 Significant Deficiency Yes A
391717 2022-004 Significant Deficiency Yes A
391718 2022-004 Significant Deficiency Yes A
391719 2022-004 Significant Deficiency Yes A
391720 2022-004 Significant Deficiency Yes A
391721 2022-004 Significant Deficiency Yes A
391722 2022-005 Significant Deficiency - A
391723 2022-005 Significant Deficiency - A
391724 2022-005 Significant Deficiency - A
391725 2022-005 Significant Deficiency - A
391726 2022-005 Significant Deficiency - A
391727 2022-005 Significant Deficiency - A
391728 2022-005 Significant Deficiency - A
391729 2022-003 Significant Deficiency Yes C
391730 2022-003 Significant Deficiency Yes C
391731 2022-003 Significant Deficiency Yes C
391732 2022-003 Significant Deficiency Yes C
391733 2022-003 Significant Deficiency Yes C
391734 2022-003 Significant Deficiency Yes C
391735 2022-003 Significant Deficiency Yes C
391736 2022-003 Significant Deficiency Yes C
391737 2022-003 Significant Deficiency Yes C
391738 2022-003 Significant Deficiency Yes C
391739 2022-003 Significant Deficiency Yes C
391740 2022-003 Significant Deficiency Yes C
391741 2022-003 Significant Deficiency Yes C
391742 2022-003 Significant Deficiency Yes C
391743 2022-003 Significant Deficiency Yes C
391744 2022-003 Significant Deficiency Yes C
391745 2022-003 Significant Deficiency Yes C
391746 2022-003 Significant Deficiency Yes C
391747 2022-003 Significant Deficiency Yes C
391748 2022-003 Significant Deficiency Yes C
391749 2022-003 Significant Deficiency Yes C
391750 2022-003 Significant Deficiency Yes C
391751 2022-003 Significant Deficiency Yes C
391752 2022-003 Significant Deficiency Yes C
391753 2022-003 Significant Deficiency Yes C
391754 2022-003 Significant Deficiency Yes C
391755 2022-003 Significant Deficiency Yes C
391756 2022-003 Significant Deficiency Yes C
391757 2022-003 Significant Deficiency Yes C
391758 2022-003 Significant Deficiency Yes C
391759 2022-003 Significant Deficiency Yes C
391760 2022-003 Significant Deficiency Yes C
391761 2022-004 Significant Deficiency Yes A
391762 2022-004 Significant Deficiency Yes A
391763 2022-004 Significant Deficiency Yes A
391764 2022-004 Significant Deficiency Yes A
391765 2022-004 Significant Deficiency Yes A
391766 2022-004 Significant Deficiency Yes A
391767 2022-004 Significant Deficiency Yes A
391768 2022-004 Significant Deficiency Yes A
391769 2022-004 Significant Deficiency Yes A
391770 2022-004 Significant Deficiency Yes A
391771 2022-004 Significant Deficiency Yes A
391772 2022-004 Significant Deficiency Yes A
391773 2022-004 Significant Deficiency Yes A
391774 2022-004 Significant Deficiency Yes A
391775 2022-004 Significant Deficiency Yes A
391776 2022-004 Significant Deficiency Yes A
391777 2022-004 Significant Deficiency Yes A
391778 2022-004 Significant Deficiency Yes A
391779 2022-004 Significant Deficiency Yes A
391780 2022-004 Significant Deficiency Yes A
391781 2022-004 Significant Deficiency Yes A
391782 2022-004 Significant Deficiency Yes A
391783 2022-004 Significant Deficiency Yes A
391784 2022-004 Significant Deficiency Yes A
391785 2022-004 Significant Deficiency Yes A
391786 2022-004 Significant Deficiency Yes A
391787 2022-004 Significant Deficiency Yes A
391788 2022-004 Significant Deficiency Yes A
391789 2022-004 Significant Deficiency Yes A
391790 2022-004 Significant Deficiency Yes A
391791 2022-004 Significant Deficiency Yes A
391792 2022-005 Significant Deficiency - L
391793 2022-005 Significant Deficiency - L
391794 2022-005 Significant Deficiency - L
391795 2022-005 Significant Deficiency - L
391796 2022-005 Significant Deficiency - L
391797 2022-005 Significant Deficiency - L
391798 2022-005 Significant Deficiency - L
391799 2022-005 Significant Deficiency - L
391800 2022-005 Significant Deficiency - L
391801 2022-005 Significant Deficiency - L
391802 2022-005 Significant Deficiency - L
391803 2022-005 Significant Deficiency - L
391804 2022-005 Significant Deficiency - L
391805 2022-005 Significant Deficiency - L
391806 2022-005 Significant Deficiency - L
391807 2022-005 Significant Deficiency - L
391808 2022-005 Significant Deficiency - L
391809 2022-005 Significant Deficiency - L
391810 2022-005 Significant Deficiency - L
391811 2022-005 Significant Deficiency - L
391812 2022-005 Significant Deficiency - L
391813 2022-005 Significant Deficiency - L
391814 2022-005 Significant Deficiency - L
391815 2022-005 Significant Deficiency - L
391816 2022-005 Significant Deficiency - L
391817 2022-005 Significant Deficiency - L
391818 2022-005 Significant Deficiency - L
391819 2022-005 Significant Deficiency - L
391820 2022-005 Significant Deficiency - L
391821 2022-005 Significant Deficiency - L
391822 2022-005 Significant Deficiency - L
391823 2022-002 Material Weakness - E
391824 2022-002 Material Weakness - E
391825 2022-002 Material Weakness - E
391826 2022-004 Significant Deficiency Yes A
391827 2022-004 Significant Deficiency Yes A
391828 2022-004 Significant Deficiency Yes A
391829 2022-005 Significant Deficiency - L
391830 2022-005 Significant Deficiency - L
391831 2022-005 Significant Deficiency - L
391832 2022-004 Significant Deficiency Yes A
391833 2022-005 Significant Deficiency - L
968157 2022-004 Significant Deficiency Yes A
968158 2022-004 Significant Deficiency Yes A
968159 2022-004 Significant Deficiency Yes A
968160 2022-004 Significant Deficiency Yes A
968161 2022-004 Significant Deficiency Yes A
968162 2022-004 Significant Deficiency Yes A
968163 2022-004 Significant Deficiency Yes A
968164 2022-005 Significant Deficiency - A
968165 2022-005 Significant Deficiency - A
968166 2022-005 Significant Deficiency - A
968167 2022-005 Significant Deficiency - A
968168 2022-005 Significant Deficiency - A
968169 2022-005 Significant Deficiency - A
968170 2022-005 Significant Deficiency - A
968171 2022-003 Significant Deficiency Yes C
968172 2022-003 Significant Deficiency Yes C
968173 2022-003 Significant Deficiency Yes C
968174 2022-003 Significant Deficiency Yes C
968175 2022-003 Significant Deficiency Yes C
968176 2022-003 Significant Deficiency Yes C
968177 2022-003 Significant Deficiency Yes C
968178 2022-003 Significant Deficiency Yes C
968179 2022-003 Significant Deficiency Yes C
968180 2022-003 Significant Deficiency Yes C
968181 2022-003 Significant Deficiency Yes C
968182 2022-003 Significant Deficiency Yes C
968183 2022-003 Significant Deficiency Yes C
968184 2022-003 Significant Deficiency Yes C
968185 2022-003 Significant Deficiency Yes C
968186 2022-003 Significant Deficiency Yes C
968187 2022-003 Significant Deficiency Yes C
968188 2022-003 Significant Deficiency Yes C
968189 2022-003 Significant Deficiency Yes C
968190 2022-003 Significant Deficiency Yes C
968191 2022-003 Significant Deficiency Yes C
968192 2022-003 Significant Deficiency Yes C
968193 2022-003 Significant Deficiency Yes C
968194 2022-003 Significant Deficiency Yes C
968195 2022-003 Significant Deficiency Yes C
968196 2022-003 Significant Deficiency Yes C
968197 2022-003 Significant Deficiency Yes C
968198 2022-003 Significant Deficiency Yes C
968199 2022-003 Significant Deficiency Yes C
968200 2022-003 Significant Deficiency Yes C
968201 2022-003 Significant Deficiency Yes C
968202 2022-003 Significant Deficiency Yes C
968203 2022-004 Significant Deficiency Yes A
968204 2022-004 Significant Deficiency Yes A
968205 2022-004 Significant Deficiency Yes A
968206 2022-004 Significant Deficiency Yes A
968207 2022-004 Significant Deficiency Yes A
968208 2022-004 Significant Deficiency Yes A
968209 2022-004 Significant Deficiency Yes A
968210 2022-004 Significant Deficiency Yes A
968211 2022-004 Significant Deficiency Yes A
968212 2022-004 Significant Deficiency Yes A
968213 2022-004 Significant Deficiency Yes A
968214 2022-004 Significant Deficiency Yes A
968215 2022-004 Significant Deficiency Yes A
968216 2022-004 Significant Deficiency Yes A
968217 2022-004 Significant Deficiency Yes A
968218 2022-004 Significant Deficiency Yes A
968219 2022-004 Significant Deficiency Yes A
968220 2022-004 Significant Deficiency Yes A
968221 2022-004 Significant Deficiency Yes A
968222 2022-004 Significant Deficiency Yes A
968223 2022-004 Significant Deficiency Yes A
968224 2022-004 Significant Deficiency Yes A
968225 2022-004 Significant Deficiency Yes A
968226 2022-004 Significant Deficiency Yes A
968227 2022-004 Significant Deficiency Yes A
968228 2022-004 Significant Deficiency Yes A
968229 2022-004 Significant Deficiency Yes A
968230 2022-004 Significant Deficiency Yes A
968231 2022-004 Significant Deficiency Yes A
968232 2022-004 Significant Deficiency Yes A
968233 2022-004 Significant Deficiency Yes A
968234 2022-005 Significant Deficiency - L
968235 2022-005 Significant Deficiency - L
968236 2022-005 Significant Deficiency - L
968237 2022-005 Significant Deficiency - L
968238 2022-005 Significant Deficiency - L
968239 2022-005 Significant Deficiency - L
968240 2022-005 Significant Deficiency - L
968241 2022-005 Significant Deficiency - L
968242 2022-005 Significant Deficiency - L
968243 2022-005 Significant Deficiency - L
968244 2022-005 Significant Deficiency - L
968245 2022-005 Significant Deficiency - L
968246 2022-005 Significant Deficiency - L
968247 2022-005 Significant Deficiency - L
968248 2022-005 Significant Deficiency - L
968249 2022-005 Significant Deficiency - L
968250 2022-005 Significant Deficiency - L
968251 2022-005 Significant Deficiency - L
968252 2022-005 Significant Deficiency - L
968253 2022-005 Significant Deficiency - L
968254 2022-005 Significant Deficiency - L
968255 2022-005 Significant Deficiency - L
968256 2022-005 Significant Deficiency - L
968257 2022-005 Significant Deficiency - L
968258 2022-005 Significant Deficiency - L
968259 2022-005 Significant Deficiency - L
968260 2022-005 Significant Deficiency - L
968261 2022-005 Significant Deficiency - L
968262 2022-005 Significant Deficiency - L
968263 2022-005 Significant Deficiency - L
968264 2022-005 Significant Deficiency - L
968265 2022-002 Material Weakness - E
968266 2022-002 Material Weakness - E
968267 2022-002 Material Weakness - E
968268 2022-004 Significant Deficiency Yes A
968269 2022-004 Significant Deficiency Yes A
968270 2022-004 Significant Deficiency Yes A
968271 2022-005 Significant Deficiency - L
968272 2022-005 Significant Deficiency - L
968273 2022-005 Significant Deficiency - L
968274 2022-004 Significant Deficiency Yes A
968275 2022-005 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
17.245 Trade Adjustment Assistance $166,154 - 0
17.285 Apprenticeship USA Grants $127,448 - 0
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $94,014 - 0
93.558 Temporary Assistance for Needy Families $92,011 Yes 3
17.207 Employment Service/wagner-Peyser Funded Activities $34,480 Yes 2
84.002 Adult Education - Basic Grants to States $25,200 - 0
17.801 Jobs for Veterans State Grants $10,051 Yes 2
17.259 Wia Youth Activities $8,830 Yes 3
17.258 Wia Adult Program $6,131 Yes 3
17.278 Wia Dislocated Worker Formula Grants $5,960 Yes 3
84.425 Education Stabilization Fund $1,046 - 0
93.563 Child Support Enforcement $793 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $25 - 0
17.268 H-1b Job Training Grants $11 - 0
17.225 Unemployment Insurance $2 - 0
17.277 Workforce Investment Act (wia) National Emergency Grants $-8,181 - 0

Contacts

Name Title Type
R5GQTX7KMLP5 Shamar Herron Auditee
8002859675 Christina Schaub Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule are reported on the full accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Consortium has elected to not use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Michigan Works! Southeast Consortium (the Consortium) under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the Consortium, it is not intended to and does not present its financial position or changes in net position of the Consortium.

Finding Details

Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-002
2022-002: Material Weakness in Internal Control / Material Noncompliance – Eligibility Federal Program: Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: The Temporary Assistance for Needy Families Cluster requires that individuals receiving services meet certain eligibility requirements. Eligibility requirements must comply with specific federal requirements. Condition: The Consortium did not provide documentation of eligibility for each participant selected for testing. Context: The Consortium was unable to locate eligibility determinations for 3 of 60 participants selected for testing. Cause: During the COVID-19 pandemic, selected staff were allowed to work remotely. Consequently, some staff stored eligibility documentation on the local drive of their work computers. As staff left employment, these files were not restored to a network database that is maintained, and accessible, by the Consortium. Therefore, the Consortium was unable to locate some eligibility documentation. Effect: Eligibility of some participants receiving benefits could not be confirmed. Therefore, benefits may have been paid to ineligible participants. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that all eligibility files are stored in a central location and backed up regularly. Views of Responsible Officials: We agree with the finding. We recognize the importance of having support documentation for all eligibility determinations. As we continue to strengthen our policies and procedures, we have we have established a process for ensuring documentation is properly saved and management has and will sign off on those documents accuracy.
Finding 2022-002
2022-002: Material Weakness in Internal Control / Material Noncompliance – Eligibility Federal Program: Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: The Temporary Assistance for Needy Families Cluster requires that individuals receiving services meet certain eligibility requirements. Eligibility requirements must comply with specific federal requirements. Condition: The Consortium did not provide documentation of eligibility for each participant selected for testing. Context: The Consortium was unable to locate eligibility determinations for 3 of 60 participants selected for testing. Cause: During the COVID-19 pandemic, selected staff were allowed to work remotely. Consequently, some staff stored eligibility documentation on the local drive of their work computers. As staff left employment, these files were not restored to a network database that is maintained, and accessible, by the Consortium. Therefore, the Consortium was unable to locate some eligibility documentation. Effect: Eligibility of some participants receiving benefits could not be confirmed. Therefore, benefits may have been paid to ineligible participants. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that all eligibility files are stored in a central location and backed up regularly. Views of Responsible Officials: We agree with the finding. We recognize the importance of having support documentation for all eligibility determinations. As we continue to strengthen our policies and procedures, we have we have established a process for ensuring documentation is properly saved and management has and will sign off on those documents accuracy.
Finding 2022-002
2022-002: Material Weakness in Internal Control / Material Noncompliance – Eligibility Federal Program: Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: The Temporary Assistance for Needy Families Cluster requires that individuals receiving services meet certain eligibility requirements. Eligibility requirements must comply with specific federal requirements. Condition: The Consortium did not provide documentation of eligibility for each participant selected for testing. Context: The Consortium was unable to locate eligibility determinations for 3 of 60 participants selected for testing. Cause: During the COVID-19 pandemic, selected staff were allowed to work remotely. Consequently, some staff stored eligibility documentation on the local drive of their work computers. As staff left employment, these files were not restored to a network database that is maintained, and accessible, by the Consortium. Therefore, the Consortium was unable to locate some eligibility documentation. Effect: Eligibility of some participants receiving benefits could not be confirmed. Therefore, benefits may have been paid to ineligible participants. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that all eligibility files are stored in a central location and backed up regularly. Views of Responsible Officials: We agree with the finding. We recognize the importance of having support documentation for all eligibility determinations. As we continue to strengthen our policies and procedures, we have we have established a process for ensuring documentation is properly saved and management has and will sign off on those documents accuracy.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-003
2022-003: Significant Deficiency in Internal Control / Immaterial Noncompliance – Cash Management (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) Criteria: 2 CFR 200.305(b) states, in part: “For Non-Federal entities payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity…” 2 CFR 200.305(b)(2)(ii) states, in part: “Non-Federal entities must be authorized to submit requests for advance payments and reimbursements….”. 2 CFR 200.302(b)(6) states, in part: “the financial management system of each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR 200.305 – Federal Payment”. Condition: 1) The Consortium requested funds in advance of when the related disbursements were made, 2) the basis for the advances (requests) were not supported by appropriate documentation, and 3) authorization for requesting funds in advance was not obtained. Context: The amount overdrawn for the WIOA Cluster totaled $125,668. It was noted that other programs were also overdrawn as follows: SNAP Cluster (ALN 10.561): $81,751 and Unemployment Insurance (ALN 17.225): $8,143. The total amount of funds overdrawn as of year-end totaled $215,562. Cause: Management oversight. Effect: Funds were requested and received in advance of when the related payments were disbursed without obtaining authorization for advance payments, and without properly documenting the basis for the requested funds. Consequently, the Consortium did not minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that cash draws are based on expenditures already incurred and they are supported by transactions recorded in the books and records of the Consortium. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to ensure it adheres to the policy standards for cash on hand time limits.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-002
2022-002: Material Weakness in Internal Control / Material Noncompliance – Eligibility Federal Program: Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: The Temporary Assistance for Needy Families Cluster requires that individuals receiving services meet certain eligibility requirements. Eligibility requirements must comply with specific federal requirements. Condition: The Consortium did not provide documentation of eligibility for each participant selected for testing. Context: The Consortium was unable to locate eligibility determinations for 3 of 60 participants selected for testing. Cause: During the COVID-19 pandemic, selected staff were allowed to work remotely. Consequently, some staff stored eligibility documentation on the local drive of their work computers. As staff left employment, these files were not restored to a network database that is maintained, and accessible, by the Consortium. Therefore, the Consortium was unable to locate some eligibility documentation. Effect: Eligibility of some participants receiving benefits could not be confirmed. Therefore, benefits may have been paid to ineligible participants. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that all eligibility files are stored in a central location and backed up regularly. Views of Responsible Officials: We agree with the finding. We recognize the importance of having support documentation for all eligibility determinations. As we continue to strengthen our policies and procedures, we have we have established a process for ensuring documentation is properly saved and management has and will sign off on those documents accuracy.
Finding 2022-002
2022-002: Material Weakness in Internal Control / Material Noncompliance – Eligibility Federal Program: Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: The Temporary Assistance for Needy Families Cluster requires that individuals receiving services meet certain eligibility requirements. Eligibility requirements must comply with specific federal requirements. Condition: The Consortium did not provide documentation of eligibility for each participant selected for testing. Context: The Consortium was unable to locate eligibility determinations for 3 of 60 participants selected for testing. Cause: During the COVID-19 pandemic, selected staff were allowed to work remotely. Consequently, some staff stored eligibility documentation on the local drive of their work computers. As staff left employment, these files were not restored to a network database that is maintained, and accessible, by the Consortium. Therefore, the Consortium was unable to locate some eligibility documentation. Effect: Eligibility of some participants receiving benefits could not be confirmed. Therefore, benefits may have been paid to ineligible participants. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that all eligibility files are stored in a central location and backed up regularly. Views of Responsible Officials: We agree with the finding. We recognize the importance of having support documentation for all eligibility determinations. As we continue to strengthen our policies and procedures, we have we have established a process for ensuring documentation is properly saved and management has and will sign off on those documents accuracy.
Finding 2022-002
2022-002: Material Weakness in Internal Control / Material Noncompliance – Eligibility Federal Program: Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: The Temporary Assistance for Needy Families Cluster requires that individuals receiving services meet certain eligibility requirements. Eligibility requirements must comply with specific federal requirements. Condition: The Consortium did not provide documentation of eligibility for each participant selected for testing. Context: The Consortium was unable to locate eligibility determinations for 3 of 60 participants selected for testing. Cause: During the COVID-19 pandemic, selected staff were allowed to work remotely. Consequently, some staff stored eligibility documentation on the local drive of their work computers. As staff left employment, these files were not restored to a network database that is maintained, and accessible, by the Consortium. Therefore, the Consortium was unable to locate some eligibility documentation. Effect: Eligibility of some participants receiving benefits could not be confirmed. Therefore, benefits may have been paid to ineligible participants. Recommendation: The Consortium should carefully review their policies and procedures and make the necessary changes to assure that all eligibility files are stored in a central location and backed up regularly. Views of Responsible Officials: We agree with the finding. We recognize the importance of having support documentation for all eligibility determinations. As we continue to strengthen our policies and procedures, we have we have established a process for ensuring documentation is properly saved and management has and will sign off on those documents accuracy.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.
Finding 2022-004
2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.
Finding 2022-005
2022-005: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster, Employment Services Cluster, and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster, Employment Services Cluster, and Temporary Assistance for Needy Families Cluster, and final close out reports selected for testing for WIOA Cluster, were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding. Michigan Works! Southeast will continue to work to meet close out deadlines.