FAC Explorer

Audit 317675

FY End
2022-06-30
Total Expended
$3.44M
Findings
6
Programs
6
Organization: Little Rock Workforce Development Board (AR)
Year: 2022 Accepted: 2024-08-21
Auditor: Forvis Mazars LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
484748 2022-002 Material Weakness - BM
484749 2022-002 Material Weakness - BM
484750 2022-002 Material Weakness - BM
1061190 2022-002 Material Weakness - BM
1061191 2022-002 Material Weakness - BM
1061192 2022-002 Material Weakness - BM

Programs

ALN Program Spent Major Findings
93.558 Temporary Assistance for Needy Families (tanf) $1.94M Yes 0
17.270 Reentry Employment Opportunities $415,004 - 0
17.258 Wioa Adult Program $346,173 Yes 1
17.259 Wioa Youth Activites $271,495 Yes 1
17.278 Wioa Dislocated Worker Formula Grants $239,575 Yes 1
17.274 Youthbuild $229,862 - 0

Contacts

Name Title Type
GL4XVP63JNV3 Wj Monagle Auditee
5016833843 Kyle Elmore Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Little Rock Workforce Development Board has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Little Rock Workforce Development Board 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 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 Little Rock Workforce Development Board, it is not intended to and does not present the financial position, changes in net assets or cash flows of Little Rock Workforce Development Board.

Finding Details

Finding 2022-002
Federal Program: Workforce Investment Opportunity Act Cluster Assistance Listing 17.258 WIOA Adult Program Assistance Listing 17.259 WIOA Youth Activities Assistance Listing 17.278 WIOA Dislocated Worker Formula Grants Pass-Through Entity Identifying Number: 05-P19-Youth-81/05-P20-Youth-81 05-F20-Adult-81/05-F21-Adult-81/05-F22-Adult-81 05-F20-DLW-81/05-F21-DLW-81/05-F22-DLW-81 Federal Agency: U.S. Department of Labor 2022-002 Criteria or specific requirement: Subrecipient Monitoring (2 CFR 200.331 and 20CFR 683.210) and Activities Allowed or Unallowed (2 CFR 200, Subpart E) – Management is responsible for ensuring compliance with certain provisions of laws, regulations, contracts, and grant agreements. Condition: An ongoing investigation by a state agency on the WIOA program for the 2021 program year (fiscal 2022) has alleged a potential violation of cost allowable under federal awards. The reports state that there are questioned costs of approximately $775,000. Questioned Costs: $775,000 Context: The Organization operated without a legally binding agreement for WIOA Title I and One-stop Operator Services for over 10 months after the expiration of the previous contract. This results in questioned costs of $725,000. In addition, there was not sufficient documentation to support the allocation basis for certain expenditures charged to WIOA that resulted in additional questioned costs. Effect: The noncompliance could have a direct and material effect on the financial statements. Cause: Proper allowable costs policies and procedures were not in place according to the state agency. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend the Organization strengthen controls and processes related to the allowable costs policies and procedures. Views of Responsible Officials and Planned Corrective Actions: Management is considering its options for further appeals to the Department of Labor for review.
Finding 2022-002
Federal Program: Workforce Investment Opportunity Act Cluster Assistance Listing 17.258 WIOA Adult Program Assistance Listing 17.259 WIOA Youth Activities Assistance Listing 17.278 WIOA Dislocated Worker Formula Grants Pass-Through Entity Identifying Number: 05-P19-Youth-81/05-P20-Youth-81 05-F20-Adult-81/05-F21-Adult-81/05-F22-Adult-81 05-F20-DLW-81/05-F21-DLW-81/05-F22-DLW-81 Federal Agency: U.S. Department of Labor 2022-002 Criteria or specific requirement: Subrecipient Monitoring (2 CFR 200.331 and 20CFR 683.210) and Activities Allowed or Unallowed (2 CFR 200, Subpart E) – Management is responsible for ensuring compliance with certain provisions of laws, regulations, contracts, and grant agreements. Condition: An ongoing investigation by a state agency on the WIOA program for the 2021 program year (fiscal 2022) has alleged a potential violation of cost allowable under federal awards. The reports state that there are questioned costs of approximately $775,000. Questioned Costs: $775,000 Context: The Organization operated without a legally binding agreement for WIOA Title I and One-stop Operator Services for over 10 months after the expiration of the previous contract. This results in questioned costs of $725,000. In addition, there was not sufficient documentation to support the allocation basis for certain expenditures charged to WIOA that resulted in additional questioned costs. Effect: The noncompliance could have a direct and material effect on the financial statements. Cause: Proper allowable costs policies and procedures were not in place according to the state agency. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend the Organization strengthen controls and processes related to the allowable costs policies and procedures. Views of Responsible Officials and Planned Corrective Actions: Management is considering its options for further appeals to the Department of Labor for review.
Finding 2022-002
Federal Program: Workforce Investment Opportunity Act Cluster Assistance Listing 17.258 WIOA Adult Program Assistance Listing 17.259 WIOA Youth Activities Assistance Listing 17.278 WIOA Dislocated Worker Formula Grants Pass-Through Entity Identifying Number: 05-P19-Youth-81/05-P20-Youth-81 05-F20-Adult-81/05-F21-Adult-81/05-F22-Adult-81 05-F20-DLW-81/05-F21-DLW-81/05-F22-DLW-81 Federal Agency: U.S. Department of Labor 2022-002 Criteria or specific requirement: Subrecipient Monitoring (2 CFR 200.331 and 20CFR 683.210) and Activities Allowed or Unallowed (2 CFR 200, Subpart E) – Management is responsible for ensuring compliance with certain provisions of laws, regulations, contracts, and grant agreements. Condition: An ongoing investigation by a state agency on the WIOA program for the 2021 program year (fiscal 2022) has alleged a potential violation of cost allowable under federal awards. The reports state that there are questioned costs of approximately $775,000. Questioned Costs: $775,000 Context: The Organization operated without a legally binding agreement for WIOA Title I and One-stop Operator Services for over 10 months after the expiration of the previous contract. This results in questioned costs of $725,000. In addition, there was not sufficient documentation to support the allocation basis for certain expenditures charged to WIOA that resulted in additional questioned costs. Effect: The noncompliance could have a direct and material effect on the financial statements. Cause: Proper allowable costs policies and procedures were not in place according to the state agency. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend the Organization strengthen controls and processes related to the allowable costs policies and procedures. Views of Responsible Officials and Planned Corrective Actions: Management is considering its options for further appeals to the Department of Labor for review.
Finding 2022-002
Federal Program: Workforce Investment Opportunity Act Cluster Assistance Listing 17.258 WIOA Adult Program Assistance Listing 17.259 WIOA Youth Activities Assistance Listing 17.278 WIOA Dislocated Worker Formula Grants Pass-Through Entity Identifying Number: 05-P19-Youth-81/05-P20-Youth-81 05-F20-Adult-81/05-F21-Adult-81/05-F22-Adult-81 05-F20-DLW-81/05-F21-DLW-81/05-F22-DLW-81 Federal Agency: U.S. Department of Labor 2022-002 Criteria or specific requirement: Subrecipient Monitoring (2 CFR 200.331 and 20CFR 683.210) and Activities Allowed or Unallowed (2 CFR 200, Subpart E) – Management is responsible for ensuring compliance with certain provisions of laws, regulations, contracts, and grant agreements. Condition: An ongoing investigation by a state agency on the WIOA program for the 2021 program year (fiscal 2022) has alleged a potential violation of cost allowable under federal awards. The reports state that there are questioned costs of approximately $775,000. Questioned Costs: $775,000 Context: The Organization operated without a legally binding agreement for WIOA Title I and One-stop Operator Services for over 10 months after the expiration of the previous contract. This results in questioned costs of $725,000. In addition, there was not sufficient documentation to support the allocation basis for certain expenditures charged to WIOA that resulted in additional questioned costs. Effect: The noncompliance could have a direct and material effect on the financial statements. Cause: Proper allowable costs policies and procedures were not in place according to the state agency. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend the Organization strengthen controls and processes related to the allowable costs policies and procedures. Views of Responsible Officials and Planned Corrective Actions: Management is considering its options for further appeals to the Department of Labor for review.
Finding 2022-002
Federal Program: Workforce Investment Opportunity Act Cluster Assistance Listing 17.258 WIOA Adult Program Assistance Listing 17.259 WIOA Youth Activities Assistance Listing 17.278 WIOA Dislocated Worker Formula Grants Pass-Through Entity Identifying Number: 05-P19-Youth-81/05-P20-Youth-81 05-F20-Adult-81/05-F21-Adult-81/05-F22-Adult-81 05-F20-DLW-81/05-F21-DLW-81/05-F22-DLW-81 Federal Agency: U.S. Department of Labor 2022-002 Criteria or specific requirement: Subrecipient Monitoring (2 CFR 200.331 and 20CFR 683.210) and Activities Allowed or Unallowed (2 CFR 200, Subpart E) – Management is responsible for ensuring compliance with certain provisions of laws, regulations, contracts, and grant agreements. Condition: An ongoing investigation by a state agency on the WIOA program for the 2021 program year (fiscal 2022) has alleged a potential violation of cost allowable under federal awards. The reports state that there are questioned costs of approximately $775,000. Questioned Costs: $775,000 Context: The Organization operated without a legally binding agreement for WIOA Title I and One-stop Operator Services for over 10 months after the expiration of the previous contract. This results in questioned costs of $725,000. In addition, there was not sufficient documentation to support the allocation basis for certain expenditures charged to WIOA that resulted in additional questioned costs. Effect: The noncompliance could have a direct and material effect on the financial statements. Cause: Proper allowable costs policies and procedures were not in place according to the state agency. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend the Organization strengthen controls and processes related to the allowable costs policies and procedures. Views of Responsible Officials and Planned Corrective Actions: Management is considering its options for further appeals to the Department of Labor for review.
Finding 2022-002
Federal Program: Workforce Investment Opportunity Act Cluster Assistance Listing 17.258 WIOA Adult Program Assistance Listing 17.259 WIOA Youth Activities Assistance Listing 17.278 WIOA Dislocated Worker Formula Grants Pass-Through Entity Identifying Number: 05-P19-Youth-81/05-P20-Youth-81 05-F20-Adult-81/05-F21-Adult-81/05-F22-Adult-81 05-F20-DLW-81/05-F21-DLW-81/05-F22-DLW-81 Federal Agency: U.S. Department of Labor 2022-002 Criteria or specific requirement: Subrecipient Monitoring (2 CFR 200.331 and 20CFR 683.210) and Activities Allowed or Unallowed (2 CFR 200, Subpart E) – Management is responsible for ensuring compliance with certain provisions of laws, regulations, contracts, and grant agreements. Condition: An ongoing investigation by a state agency on the WIOA program for the 2021 program year (fiscal 2022) has alleged a potential violation of cost allowable under federal awards. The reports state that there are questioned costs of approximately $775,000. Questioned Costs: $775,000 Context: The Organization operated without a legally binding agreement for WIOA Title I and One-stop Operator Services for over 10 months after the expiration of the previous contract. This results in questioned costs of $725,000. In addition, there was not sufficient documentation to support the allocation basis for certain expenditures charged to WIOA that resulted in additional questioned costs. Effect: The noncompliance could have a direct and material effect on the financial statements. Cause: Proper allowable costs policies and procedures were not in place according to the state agency. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend the Organization strengthen controls and processes related to the allowable costs policies and procedures. Views of Responsible Officials and Planned Corrective Actions: Management is considering its options for further appeals to the Department of Labor for review.