Audit 319331

FY End
2023-06-30
Total Expended
$2.52M
Findings
10
Programs
9
Year: 2023 Accepted: 2024-09-11

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
496425 2023-004 Significant Deficiency - B
496426 2023-004 Significant Deficiency - B
496427 2023-004 Significant Deficiency - B
496428 2023-004 Significant Deficiency - B
496429 2023-004 Significant Deficiency - B
1072867 2023-004 Significant Deficiency - B
1072868 2023-004 Significant Deficiency - B
1072869 2023-004 Significant Deficiency - B
1072870 2023-004 Significant Deficiency - B
1072871 2023-004 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
17.285 Apprenticeship USA Grants $682,661 - 0
17.258 Wia Adult Program $610,973 Yes 1
17.278 Wia Dislocated Worker Formula Grants $457,159 Yes 1
17.207 Employment Service/wagner-Peyser Funded Activities $91,155 - 0
17.268 H-1b Job Training Grants $58,242 - 0
93.558 Temporary Assistance for Needy Families $46,048 - 0
17.259 Wia Youth Activities $45,610 Yes 1
17.274 Youthbuild $34,181 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $25,000 - 0

Contacts

Name Title Type
NHLLTK35ERN5 David Rowden Auditee
5173720784 Daniel Clark, CPA Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activities of Michigan State AFL-CIO Workforce Development Institute (the “Organization”) under programs of the federal government for the year ended June 30, 2023. 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 the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. 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 or other applicable 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: For purposes of charging indirect costs to federal awards, the Organization has elected not to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance.

Finding Details

2023-004 - Allowable Costs/Cost Principles – Payroll Documentation Finding Type. Immaterial noncompliance; Significant Deficiency in Internal Controls over Compliance Program. WIOA Cluster; U.S. Department of Labor; Southeast Michigan Community Alliance and W.E. Upjohn Institute; Assistance Listing Numbers 17.258, 17.259, and 17.278; All award numbers. Criteria. The Uniform Guidance requires the Organization to support payroll charged to federal cost objectives with adequate documentation in accordance with the Organization's payroll policies. Per the Organization's federal policies, the Organization is required to support payroll charges to federal cost objectives with adequate documentation including timesheets for those who split their time between multiple cost objectives. Condition. Of the 40 payroll transactions selected for testing, one instance lacked documentation that complied with the Organization's policies and there were two instances where the documentation did not agree with the amounts charged to the program (all related to the same employee). Cause. This condition appears to be the result of the Organization charging costs to the program that were not properly supported using allowable methods and/or the costs charged to the program did not agree to the underlying support. Effect. As a result of this condition, the Organization does not have appropriate payroll support for three of the transactions charged to the grant. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $1,147. Recommendation. We recommend the Organization limit payroll charged to federal programs to costs that are supported by documentation that is allowable under federal cost principles and its own policies and procedures. View of Responsible Official. Management concurs with this finding. During the implementation of the new payroll system, corrections were made to the data from the timecards in question. No supporting documentation for those corrections were found. Procedures have been put in place to ensure any corrections to timecard data is approved by management and has supporting documentation. This procedure was implemented during fiscal year 2024. Responsible Official. Finance Director Expected Completion Date. June 30, 2024
2023-004 - Allowable Costs/Cost Principles – Payroll Documentation Finding Type. Immaterial noncompliance; Significant Deficiency in Internal Controls over Compliance Program. WIOA Cluster; U.S. Department of Labor; Southeast Michigan Community Alliance and W.E. Upjohn Institute; Assistance Listing Numbers 17.258, 17.259, and 17.278; All award numbers. Criteria. The Uniform Guidance requires the Organization to support payroll charged to federal cost objectives with adequate documentation in accordance with the Organization's payroll policies. Per the Organization's federal policies, the Organization is required to support payroll charges to federal cost objectives with adequate documentation including timesheets for those who split their time between multiple cost objectives. Condition. Of the 40 payroll transactions selected for testing, one instance lacked documentation that complied with the Organization's policies and there were two instances where the documentation did not agree with the amounts charged to the program (all related to the same employee). Cause. This condition appears to be the result of the Organization charging costs to the program that were not properly supported using allowable methods and/or the costs charged to the program did not agree to the underlying support. Effect. As a result of this condition, the Organization does not have appropriate payroll support for three of the transactions charged to the grant. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $1,147. Recommendation. We recommend the Organization limit payroll charged to federal programs to costs that are supported by documentation that is allowable under federal cost principles and its own policies and procedures. View of Responsible Official. Management concurs with this finding. During the implementation of the new payroll system, corrections were made to the data from the timecards in question. No supporting documentation for those corrections were found. Procedures have been put in place to ensure any corrections to timecard data is approved by management and has supporting documentation. This procedure was implemented during fiscal year 2024. Responsible Official. Finance Director Expected Completion Date. June 30, 2024
2023-004 - Allowable Costs/Cost Principles – Payroll Documentation Finding Type. Immaterial noncompliance; Significant Deficiency in Internal Controls over Compliance Program. WIOA Cluster; U.S. Department of Labor; Southeast Michigan Community Alliance and W.E. Upjohn Institute; Assistance Listing Numbers 17.258, 17.259, and 17.278; All award numbers. Criteria. The Uniform Guidance requires the Organization to support payroll charged to federal cost objectives with adequate documentation in accordance with the Organization's payroll policies. Per the Organization's federal policies, the Organization is required to support payroll charges to federal cost objectives with adequate documentation including timesheets for those who split their time between multiple cost objectives. Condition. Of the 40 payroll transactions selected for testing, one instance lacked documentation that complied with the Organization's policies and there were two instances where the documentation did not agree with the amounts charged to the program (all related to the same employee). Cause. This condition appears to be the result of the Organization charging costs to the program that were not properly supported using allowable methods and/or the costs charged to the program did not agree to the underlying support. Effect. As a result of this condition, the Organization does not have appropriate payroll support for three of the transactions charged to the grant. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $1,147. Recommendation. We recommend the Organization limit payroll charged to federal programs to costs that are supported by documentation that is allowable under federal cost principles and its own policies and procedures. View of Responsible Official. Management concurs with this finding. During the implementation of the new payroll system, corrections were made to the data from the timecards in question. No supporting documentation for those corrections were found. Procedures have been put in place to ensure any corrections to timecard data is approved by management and has supporting documentation. This procedure was implemented during fiscal year 2024. Responsible Official. Finance Director Expected Completion Date. June 30, 2024
2023-004 - Allowable Costs/Cost Principles – Payroll Documentation Finding Type. Immaterial noncompliance; Significant Deficiency in Internal Controls over Compliance Program. WIOA Cluster; U.S. Department of Labor; Southeast Michigan Community Alliance and W.E. Upjohn Institute; Assistance Listing Numbers 17.258, 17.259, and 17.278; All award numbers. Criteria. The Uniform Guidance requires the Organization to support payroll charged to federal cost objectives with adequate documentation in accordance with the Organization's payroll policies. Per the Organization's federal policies, the Organization is required to support payroll charges to federal cost objectives with adequate documentation including timesheets for those who split their time between multiple cost objectives. Condition. Of the 40 payroll transactions selected for testing, one instance lacked documentation that complied with the Organization's policies and there were two instances where the documentation did not agree with the amounts charged to the program (all related to the same employee). Cause. This condition appears to be the result of the Organization charging costs to the program that were not properly supported using allowable methods and/or the costs charged to the program did not agree to the underlying support. Effect. As a result of this condition, the Organization does not have appropriate payroll support for three of the transactions charged to the grant. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $1,147. Recommendation. We recommend the Organization limit payroll charged to federal programs to costs that are supported by documentation that is allowable under federal cost principles and its own policies and procedures. View of Responsible Official. Management concurs with this finding. During the implementation of the new payroll system, corrections were made to the data from the timecards in question. No supporting documentation for those corrections were found. Procedures have been put in place to ensure any corrections to timecard data is approved by management and has supporting documentation. This procedure was implemented during fiscal year 2024. Responsible Official. Finance Director Expected Completion Date. June 30, 2024
2023-004 - Allowable Costs/Cost Principles – Payroll Documentation Finding Type. Immaterial noncompliance; Significant Deficiency in Internal Controls over Compliance Program. WIOA Cluster; U.S. Department of Labor; Southeast Michigan Community Alliance and W.E. Upjohn Institute; Assistance Listing Numbers 17.258, 17.259, and 17.278; All award numbers. Criteria. The Uniform Guidance requires the Organization to support payroll charged to federal cost objectives with adequate documentation in accordance with the Organization's payroll policies. Per the Organization's federal policies, the Organization is required to support payroll charges to federal cost objectives with adequate documentation including timesheets for those who split their time between multiple cost objectives. Condition. Of the 40 payroll transactions selected for testing, one instance lacked documentation that complied with the Organization's policies and there were two instances where the documentation did not agree with the amounts charged to the program (all related to the same employee). Cause. This condition appears to be the result of the Organization charging costs to the program that were not properly supported using allowable methods and/or the costs charged to the program did not agree to the underlying support. Effect. As a result of this condition, the Organization does not have appropriate payroll support for three of the transactions charged to the grant. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $1,147. Recommendation. We recommend the Organization limit payroll charged to federal programs to costs that are supported by documentation that is allowable under federal cost principles and its own policies and procedures. View of Responsible Official. Management concurs with this finding. During the implementation of the new payroll system, corrections were made to the data from the timecards in question. No supporting documentation for those corrections were found. Procedures have been put in place to ensure any corrections to timecard data is approved by management and has supporting documentation. This procedure was implemented during fiscal year 2024. Responsible Official. Finance Director Expected Completion Date. June 30, 2024
2023-004 - Allowable Costs/Cost Principles – Payroll Documentation Finding Type. Immaterial noncompliance; Significant Deficiency in Internal Controls over Compliance Program. WIOA Cluster; U.S. Department of Labor; Southeast Michigan Community Alliance and W.E. Upjohn Institute; Assistance Listing Numbers 17.258, 17.259, and 17.278; All award numbers. Criteria. The Uniform Guidance requires the Organization to support payroll charged to federal cost objectives with adequate documentation in accordance with the Organization's payroll policies. Per the Organization's federal policies, the Organization is required to support payroll charges to federal cost objectives with adequate documentation including timesheets for those who split their time between multiple cost objectives. Condition. Of the 40 payroll transactions selected for testing, one instance lacked documentation that complied with the Organization's policies and there were two instances where the documentation did not agree with the amounts charged to the program (all related to the same employee). Cause. This condition appears to be the result of the Organization charging costs to the program that were not properly supported using allowable methods and/or the costs charged to the program did not agree to the underlying support. Effect. As a result of this condition, the Organization does not have appropriate payroll support for three of the transactions charged to the grant. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $1,147. Recommendation. We recommend the Organization limit payroll charged to federal programs to costs that are supported by documentation that is allowable under federal cost principles and its own policies and procedures. View of Responsible Official. Management concurs with this finding. During the implementation of the new payroll system, corrections were made to the data from the timecards in question. No supporting documentation for those corrections were found. Procedures have been put in place to ensure any corrections to timecard data is approved by management and has supporting documentation. This procedure was implemented during fiscal year 2024. Responsible Official. Finance Director Expected Completion Date. June 30, 2024
2023-004 - Allowable Costs/Cost Principles – Payroll Documentation Finding Type. Immaterial noncompliance; Significant Deficiency in Internal Controls over Compliance Program. WIOA Cluster; U.S. Department of Labor; Southeast Michigan Community Alliance and W.E. Upjohn Institute; Assistance Listing Numbers 17.258, 17.259, and 17.278; All award numbers. Criteria. The Uniform Guidance requires the Organization to support payroll charged to federal cost objectives with adequate documentation in accordance with the Organization's payroll policies. Per the Organization's federal policies, the Organization is required to support payroll charges to federal cost objectives with adequate documentation including timesheets for those who split their time between multiple cost objectives. Condition. Of the 40 payroll transactions selected for testing, one instance lacked documentation that complied with the Organization's policies and there were two instances where the documentation did not agree with the amounts charged to the program (all related to the same employee). Cause. This condition appears to be the result of the Organization charging costs to the program that were not properly supported using allowable methods and/or the costs charged to the program did not agree to the underlying support. Effect. As a result of this condition, the Organization does not have appropriate payroll support for three of the transactions charged to the grant. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $1,147. Recommendation. We recommend the Organization limit payroll charged to federal programs to costs that are supported by documentation that is allowable under federal cost principles and its own policies and procedures. View of Responsible Official. Management concurs with this finding. During the implementation of the new payroll system, corrections were made to the data from the timecards in question. No supporting documentation for those corrections were found. Procedures have been put in place to ensure any corrections to timecard data is approved by management and has supporting documentation. This procedure was implemented during fiscal year 2024. Responsible Official. Finance Director Expected Completion Date. June 30, 2024
2023-004 - Allowable Costs/Cost Principles – Payroll Documentation Finding Type. Immaterial noncompliance; Significant Deficiency in Internal Controls over Compliance Program. WIOA Cluster; U.S. Department of Labor; Southeast Michigan Community Alliance and W.E. Upjohn Institute; Assistance Listing Numbers 17.258, 17.259, and 17.278; All award numbers. Criteria. The Uniform Guidance requires the Organization to support payroll charged to federal cost objectives with adequate documentation in accordance with the Organization's payroll policies. Per the Organization's federal policies, the Organization is required to support payroll charges to federal cost objectives with adequate documentation including timesheets for those who split their time between multiple cost objectives. Condition. Of the 40 payroll transactions selected for testing, one instance lacked documentation that complied with the Organization's policies and there were two instances where the documentation did not agree with the amounts charged to the program (all related to the same employee). Cause. This condition appears to be the result of the Organization charging costs to the program that were not properly supported using allowable methods and/or the costs charged to the program did not agree to the underlying support. Effect. As a result of this condition, the Organization does not have appropriate payroll support for three of the transactions charged to the grant. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $1,147. Recommendation. We recommend the Organization limit payroll charged to federal programs to costs that are supported by documentation that is allowable under federal cost principles and its own policies and procedures. View of Responsible Official. Management concurs with this finding. During the implementation of the new payroll system, corrections were made to the data from the timecards in question. No supporting documentation for those corrections were found. Procedures have been put in place to ensure any corrections to timecard data is approved by management and has supporting documentation. This procedure was implemented during fiscal year 2024. Responsible Official. Finance Director Expected Completion Date. June 30, 2024
2023-004 - Allowable Costs/Cost Principles – Payroll Documentation Finding Type. Immaterial noncompliance; Significant Deficiency in Internal Controls over Compliance Program. WIOA Cluster; U.S. Department of Labor; Southeast Michigan Community Alliance and W.E. Upjohn Institute; Assistance Listing Numbers 17.258, 17.259, and 17.278; All award numbers. Criteria. The Uniform Guidance requires the Organization to support payroll charged to federal cost objectives with adequate documentation in accordance with the Organization's payroll policies. Per the Organization's federal policies, the Organization is required to support payroll charges to federal cost objectives with adequate documentation including timesheets for those who split their time between multiple cost objectives. Condition. Of the 40 payroll transactions selected for testing, one instance lacked documentation that complied with the Organization's policies and there were two instances where the documentation did not agree with the amounts charged to the program (all related to the same employee). Cause. This condition appears to be the result of the Organization charging costs to the program that were not properly supported using allowable methods and/or the costs charged to the program did not agree to the underlying support. Effect. As a result of this condition, the Organization does not have appropriate payroll support for three of the transactions charged to the grant. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $1,147. Recommendation. We recommend the Organization limit payroll charged to federal programs to costs that are supported by documentation that is allowable under federal cost principles and its own policies and procedures. View of Responsible Official. Management concurs with this finding. During the implementation of the new payroll system, corrections were made to the data from the timecards in question. No supporting documentation for those corrections were found. Procedures have been put in place to ensure any corrections to timecard data is approved by management and has supporting documentation. This procedure was implemented during fiscal year 2024. Responsible Official. Finance Director Expected Completion Date. June 30, 2024
2023-004 - Allowable Costs/Cost Principles – Payroll Documentation Finding Type. Immaterial noncompliance; Significant Deficiency in Internal Controls over Compliance Program. WIOA Cluster; U.S. Department of Labor; Southeast Michigan Community Alliance and W.E. Upjohn Institute; Assistance Listing Numbers 17.258, 17.259, and 17.278; All award numbers. Criteria. The Uniform Guidance requires the Organization to support payroll charged to federal cost objectives with adequate documentation in accordance with the Organization's payroll policies. Per the Organization's federal policies, the Organization is required to support payroll charges to federal cost objectives with adequate documentation including timesheets for those who split their time between multiple cost objectives. Condition. Of the 40 payroll transactions selected for testing, one instance lacked documentation that complied with the Organization's policies and there were two instances where the documentation did not agree with the amounts charged to the program (all related to the same employee). Cause. This condition appears to be the result of the Organization charging costs to the program that were not properly supported using allowable methods and/or the costs charged to the program did not agree to the underlying support. Effect. As a result of this condition, the Organization does not have appropriate payroll support for three of the transactions charged to the grant. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $1,147. Recommendation. We recommend the Organization limit payroll charged to federal programs to costs that are supported by documentation that is allowable under federal cost principles and its own policies and procedures. View of Responsible Official. Management concurs with this finding. During the implementation of the new payroll system, corrections were made to the data from the timecards in question. No supporting documentation for those corrections were found. Procedures have been put in place to ensure any corrections to timecard data is approved by management and has supporting documentation. This procedure was implemented during fiscal year 2024. Responsible Official. Finance Director Expected Completion Date. June 30, 2024