Audit 320073

Auditee has improperly tracked grant awards and expenditures. Federal Programs Impacted: 17,258 (WIOA Cluster). Questioned Costs: None. Condition: The WDBEA expended more than $750,000 in federal awards, triggering a single audit requirement. However, when asked to provide a schedule of expenditures of federal awards, client gave different amounts of revenues and expenditures than those provided through external confirmation by oversight agencies. Criteria: 2 CFR Section 200.329 states that it is the auditee's responsibility to monitor their activities for which federal awards are used. Cause: Unallowable costs among other items were included in the client's schedule of expenditures of federal awards. In addition, the books kept by the former finance manager were inadequate to properly track grant awards and expenditures. Effect: Difficulty in ascertaining the true balances of federal revenues and expenditures as reported on the schedule of expenditures of federal awards. Recommendation: We recommend the WDBEA maintains an effort to properly track and report federal awards and expenditures. Management Response: Managmeent will develop procedures which adequately address shortcomings of grant tracking and further solidify the processes for tracking and reporting of grant funds.

Internal control failtures including two employee timesheets being unreviewed by agreed-upon personnel. Federal Programs Impacted: 17.258 (WIOA Cluster) Questioned Costs: None. Condition: Per the auditee's internal control procedures, employee timesheets are to be signed off on by one of the individual listed above. However, we noted two exceptions throughout all procedures applied. Criteria: 2 CFR Section 200.329 states that it is the auditee's responsibility to monitor their activities for which federal awards are used. A component of this is to develop effective internal controls to ensure compliance with relevant compliance requirements. Cause: Internal control procedures failed, and management missed two timesheets for which review was needed. Effect: Disallowed costs related to payroll could have been charged to federal awards. Recommendation: We recommend management ensure all internal control procedures are being followed as outlined. Management Response: Management agrees with this finding and will ensure internal controls are followed as outlined.

Singleaudit data collection form not filed by due date. Federal Programs Impacted: 17.258 (WIOA Cluster). Questioned CostsL None. Condition: The data collection form for the single audit ended June 30, 2021 was not submitted to the Federal Audit Clearinghouse by the due date. Criteria: 2 CFR Section 200.512(b) provides for a form, referred to as the data collection form, to be prepared at the completio of each audit and submitted by the auditee to the Federal Audit Clearinghouse the earlier of 30 calendar days after reciept of the auditor's reports or nine months after the end of the audit period. Cause: The audit report was not completed by the nine month due date. This is due to bank reonciliation not reconciling appropriately in addition to auditor timelines impacting the ability to complete the audit. Effect: The WDBEA has not met the reporting requirements related to timely submission of the data collection form required for a single audit. Therefore, per 2 CFR Section 200.520, the WDBEA will not meet the low-risk criteria for future single audits that require submission of the data collection form and reporting package by the due date for each of the two preceding audit years. Recommendation: We recommend the WDBEA to continue its efforts in bringing audits up to date. Management Reponse: Management will continue its efforts incompleting audits in a timely and efficient manner.

Auditee has improperly tracked grant awards and expenditures. Federal Programs Impacted: 17,258 (WIOA Cluster). Questioned Costs: None. Condition: The WDBEA expended more than $750,000 in federal awards, triggering a single audit requirement. However, when asked to provide a schedule of expenditures of federal awards, client gave different amounts of revenues and expenditures than those provided through external confirmation by oversight agencies. Criteria: 2 CFR Section 200.329 states that it is the auditee's responsibility to monitor their activities for which federal awards are used. Cause: Unallowable costs among other items were included in the client's schedule of expenditures of federal awards. In addition, the books kept by the former finance manager were inadequate to properly track grant awards and expenditures. Effect: Difficulty in ascertaining the true balances of federal revenues and expenditures as reported on the schedule of expenditures of federal awards. Recommendation: We recommend the WDBEA maintains an effort to properly track and report federal awards and expenditures. Management Response: Managmeent will develop procedures which adequately address shortcomings of grant tracking and further solidify the processes for tracking and reporting of grant funds.

Internal control failtures including two employee timesheets being unreviewed by agreed-upon personnel. Federal Programs Impacted: 17.258 (WIOA Cluster) Questioned Costs: None. Condition: Per the auditee's internal control procedures, employee timesheets are to be signed off on by one of the individual listed above. However, we noted two exceptions throughout all procedures applied. Criteria: 2 CFR Section 200.329 states that it is the auditee's responsibility to monitor their activities for which federal awards are used. A component of this is to develop effective internal controls to ensure compliance with relevant compliance requirements. Cause: Internal control procedures failed, and management missed two timesheets for which review was needed. Effect: Disallowed costs related to payroll could have been charged to federal awards. Recommendation: We recommend management ensure all internal control procedures are being followed as outlined. Management Response: Management agrees with this finding and will ensure internal controls are followed as outlined.

Singleaudit data collection form not filed by due date. Federal Programs Impacted: 17.258 (WIOA Cluster). Questioned CostsL None. Condition: The data collection form for the single audit ended June 30, 2021 was not submitted to the Federal Audit Clearinghouse by the due date. Criteria: 2 CFR Section 200.512(b) provides for a form, referred to as the data collection form, to be prepared at the completio of each audit and submitted by the auditee to the Federal Audit Clearinghouse the earlier of 30 calendar days after reciept of the auditor's reports or nine months after the end of the audit period. Cause: The audit report was not completed by the nine month due date. This is due to bank reonciliation not reconciling appropriately in addition to auditor timelines impacting the ability to complete the audit. Effect: The WDBEA has not met the reporting requirements related to timely submission of the data collection form required for a single audit. Therefore, per 2 CFR Section 200.520, the WDBEA will not meet the low-risk criteria for future single audits that require submission of the data collection form and reporting package by the due date for each of the two preceding audit years. Recommendation: We recommend the WDBEA to continue its efforts in bringing audits up to date. Management Reponse: Management will continue its efforts incompleting audits in a timely and efficient manner.