Audit 321537

FY End

2023-12-31

Total Expended

$1.92M

Findings

2

Programs

1

Organization: Argentum (VA)

Year: 2023 Accepted: 2024-09-27

Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
498815	2023-002	Significant Deficiency	Yes	I
1075257	2023-002	Significant Deficiency	Yes	I

ALN	Program	Spent	Major	Findings
17.268	H-1b Job Training Grants	$1.92M	Yes	1

Contacts

Name	Title	Type
DBVEXRUANRB3	James Balda	Auditee
7035621190	Mike Benoudiz	Auditor
No contacts on file

Notes to SEFA

Title: SUBRECIPIENTS Accounting Policies: Basis of Accounting The accompanying schedule of expenditures of federal awards (SEFA) includes the federal grant activity of Argentum and Affiliates (Argentum) and is presented on the accrual basis of accounting. The SEFA includes the federal award activity of Argentum for the year ended December 31, 2023. Cost Principles Federal expenditures were recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Argentum has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: Argentum has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Argentum has entered into agreements with subrecipients for certain grants. Under the terms of the agreements, payment is made to the subrecipients based on the completion of certain activities. Liabilities have only been accrued for services provided through December 31, 2023.

Finding Details

Finding 2023-002

2023-002 Suspension and Debarment Federal agency: U.S. Department of Labor Federal program title: H1-B Job Training Grants CFDA Number: 17.268 Award Period: March 1, 2020 - February 29, 2024 - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria: Uniform Grant Guidance requires compliance with the provisions of internal controls. 2 CFR Part 200.303 states that recipients of Federal funds are required to establish and maintain effective internal control over the Federal awards to provide reasonable assurance that the recipient of Federal funds is following Federal statutes, regulations and the terms and conditions of the Federal award. Argentum should have internal controls designed and effectively operating to ensure compliance with those provisions. Condition: Argentum did not properly obtain suspension and debarment certification or check the System for Award Management website before entering into a transaction for 1 of 5 covered transactions tested. Questioned costs: None Cause: Adequate procedures were not in place to verify if covered transactions with Argentum related to the federal program in excess of the threshold are not suspended, debarred, or otherwise excluded from doing business. Effect: Noncompliance with the federal award program's suspension and debarment compliance requirements could occur and not be detected and corrected timely. Repeat Finding: Yes Recommendation: Proper procedures must be implemented and documented to ensure all covered transactions with Argentum have not been suspended or debarred or otherwise excluded from doing business, prior to procuring their services. In order to verify this, program management should either obtain debarment certifications from covered contractors or check the System for Award Management website in a timely manner. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

Finding 2023-002

2023-002 Suspension and Debarment Federal agency: U.S. Department of Labor Federal program title: H1-B Job Training Grants CFDA Number: 17.268 Award Period: March 1, 2020 - February 29, 2024 - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria: Uniform Grant Guidance requires compliance with the provisions of internal controls. 2 CFR Part 200.303 states that recipients of Federal funds are required to establish and maintain effective internal control over the Federal awards to provide reasonable assurance that the recipient of Federal funds is following Federal statutes, regulations and the terms and conditions of the Federal award. Argentum should have internal controls designed and effectively operating to ensure compliance with those provisions. Condition: Argentum did not properly obtain suspension and debarment certification or check the System for Award Management website before entering into a transaction for 1 of 5 covered transactions tested. Questioned costs: None Cause: Adequate procedures were not in place to verify if covered transactions with Argentum related to the federal program in excess of the threshold are not suspended, debarred, or otherwise excluded from doing business. Effect: Noncompliance with the federal award program's suspension and debarment compliance requirements could occur and not be detected and corrected timely. Repeat Finding: Yes Recommendation: Proper procedures must be implemented and documented to ensure all covered transactions with Argentum have not been suspended or debarred or otherwise excluded from doing business, prior to procuring their services. In order to verify this, program management should either obtain debarment certifications from covered contractors or check the System for Award Management website in a timely manner. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.