Audit 323354

FY End
2023-12-31
Total Expended
$20.89M
Findings
18
Programs
11
Organization: Jvs Socal (CA)
Year: 2023 Accepted: 2024-09-30
Auditor: Armanino LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
501074 2023-004 Significant Deficiency Yes B
501075 2023-005 Significant Deficiency - B
501076 2023-006 Significant Deficiency - E
501077 2023-004 Significant Deficiency Yes B
501078 2023-005 Significant Deficiency - B
501079 2023-004 Significant Deficiency Yes B
501080 2023-005 Significant Deficiency - B
501081 2023-004 Significant Deficiency Yes B
501082 2023-005 Significant Deficiency - B
1077516 2023-004 Significant Deficiency Yes B
1077517 2023-005 Significant Deficiency - B
1077518 2023-006 Significant Deficiency - E
1077519 2023-004 Significant Deficiency Yes B
1077520 2023-005 Significant Deficiency - B
1077521 2023-004 Significant Deficiency Yes B
1077522 2023-005 Significant Deficiency - B
1077523 2023-004 Significant Deficiency Yes B
1077524 2023-005 Significant Deficiency - B

Contacts

Name Title Type
TXSYGKQAEFW4 Jeff Carr Auditee
2132207495 Renee Ordeneaux Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of JVS SoCal ("JVS") under programs of the federal government for the year ended December 31, 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 JVS, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the JVS. 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 limited as to reimbursement. Passthrough entity identifying numbers are presented where available and applicable. De Minimis Rate Used: Y Rate Explanation: JVS has elected to use the de minimus cost rate.

Finding Details

AL number and title: WIOA Cluster - 17.258, 17.259 and 17.278 Coronavirus State and Local Fiscal Recovery Funds - 21.027 VA Supportive Services for Veteran Families Program - 64.033 Refugee and Entrant Assistance State/Replacement Designee Administered Programs - 93.566 Federal award identification number and year: N/A Name of federal agency: U.S. Departments of Labor, Treasury, Veteran's Affairs and Health and Human Services Name of pass-through entities: State of California Employment Development Department; County of Los Angeles Workforce Development, Aging, and Community Services Department; City of Los Angeles Economic and Workforce Development Department; Catholic Charities of Los Angeles Repeat finding: Yes. 2022-007 Criteria: Under the Uniform Guidance, specifically 2 CFR 200.403(g), charges to Federal awards must be documented and supported by a system of internal controls, including documentation of approval of expenses. Condition: Documentation for certain expenses was unavailable or incomplete. Cause: Management currently lacks sufficient resources to locate all supporting documentation. The work from home environment has impacted existing processes and retention of information, along with turnover in the accounting department. Effect or potential effect: Original calculations of certain cost allocations were not retained and could not be reperformed. The amounts we noted were not material, but this is a repeat finding that has not been fully remediated. Questioned costs: None to be reported. Context: During 2023, the documentation for allocation of certain shared costs, such as rent, were not fully retained. Recommendation: Management should revise its transaction documentation system to allow for centralized and accessible storage of support for programmatic costs by all appropriate personnel who interact with external auditors, including local funding sources. Management should retain journal entry documentation for all types of journal entries impacting Federal contracts. View of Responsible Official: We agree and the lack of implementation is a direct result of turnover (resignation of newly hired Director of Budgeting and Compliance ). A new search is currently underway. Once a new Director is hired, process documentation and a central database repository will be fully addressed.
AL number and title: WIOA Cluster - 17.258, 17.259 and 17.278 Coronavirus State and Local Fiscal Recovery Funds - 21.027 VA Supportive Services for Veteran Families Program - 64.033 Refugee and Entrant Assistance State/Replacement Designee Administered Programs - 93.566 Federal award identification number and year: N/A Name of federal agency: U.S. Departments of Labor, Treasury, Veteran's Affairs and Health and Human Services Name of pass-through entity: State of California Employment Development Department; County of Los Angeles Workforce Development, Aging, and Community Services Department; City of Los Angeles Economic and Workforce Development Department; Catholic Charities of Los Angeles Repeat finding: No Criteria: Under the Uniform Guidance, specifically 2 CFR 200.430, organizations are permitted to use budgeted amounts to allocate time to Federal programs, as long as there is a process in place to true-up the costs on a regular basis. Condition: In general, JVS personnel prepare manual timesheets to record the actual time worked on the organization’s various programs. No process is currently in place to compare or revise the time if the budgeted time differs from the actual time. Cause: The organization lacked sufficient accounting resources to prepare these updates. Currently, the process would be very manual. Effect or potential effect: Hours charged to certain programs did not agree to the timesheets completed by employees and reviewed by their supervisors. Questioned cost: Estimated questioned costs related to variances in timesheets: Refugee Assistance programs - Known = $1,866, Projected = $24,944 WIOA programs - Known = $168, Projected = $58,485. Context: We tested a total of 114 timesheets and noted variances in 23. We also noted two instances where no timesheets were completed for administrative personnel. Recommendation: Management should institute a reconciliation and update process for the manual timecards. In addition, management should determine whether its electronic timekeeping systems can be reconfigured to allow employees to update their allocations as needed each pay period. View of Responsible Official: We agree with the finding. JVS has been evaluating how to fully address and resolve the issue. Remediation lies in modifying the current payroll platform (Paylocity) to facilitate employees ability to individually update their labor allocations electronically. JVS still does not have a sandbox testing environment to address system capabilities to achieve the objectives.
AL number and title: WIOA Cluster - 17.258, 17.259 and 17.278 Federal award identification number and year: N/A Name of federal agency: U.S. Department of Labor Name of pass-through entity: State of California Employment Development Department; County of Los Angeles Workforce Development, Aging, and Community Services Department; City of Los Angeles Economic and Workforce Development Department; Catholic Charities of Los Angeles Repeat finding: No Criteria: The WIOA Cluster has various eligibility requirements, which JVS is required to check in order to provide services. Condition: JVS could not locate three of the 25 eligibility selections made for this program. All other programs with eligibility requirements were able to locate all necessary documentation. Cause: Management currently lacks sufficient resources to locate all supporting documentation. The work from home environment has impacted existing processes and retention of information, along with turnover in the accounting department. Possible effect: The absence of documentation could result in providing service to ineligible recipients. Questioned cost: N/A Recommendation: Management should revise its transaction documentation system to allow for centralized and accessible storage of support for programmatic costs by all appropriate personnel who interact with external auditors, including local funding sources. Management should retain journal entry documentation for all types of journal entries impacting Federal contracts Views of responsible officials: We have created an eligibility checklist for the WIOA programs that lists all required documentation. Additional training will be provided to the WIOA intake team on required documentation. We will implement period spot checks to ensure all necessary documentation for eligibility are completed.
AL number and title: WIOA Cluster - 17.258, 17.259 and 17.278 Coronavirus State and Local Fiscal Recovery Funds - 21.027 VA Supportive Services for Veteran Families Program - 64.033 Refugee and Entrant Assistance State/Replacement Designee Administered Programs - 93.566 Federal award identification number and year: N/A Name of federal agency: U.S. Departments of Labor, Treasury, Veteran's Affairs and Health and Human Services Name of pass-through entities: State of California Employment Development Department; County of Los Angeles Workforce Development, Aging, and Community Services Department; City of Los Angeles Economic and Workforce Development Department; Catholic Charities of Los Angeles Repeat finding: Yes. 2022-007 Criteria: Under the Uniform Guidance, specifically 2 CFR 200.403(g), charges to Federal awards must be documented and supported by a system of internal controls, including documentation of approval of expenses. Condition: Documentation for certain expenses was unavailable or incomplete. Cause: Management currently lacks sufficient resources to locate all supporting documentation. The work from home environment has impacted existing processes and retention of information, along with turnover in the accounting department. Effect or potential effect: Original calculations of certain cost allocations were not retained and could not be reperformed. The amounts we noted were not material, but this is a repeat finding that has not been fully remediated. Questioned costs: None to be reported. Context: During 2023, the documentation for allocation of certain shared costs, such as rent, were not fully retained. Recommendation: Management should revise its transaction documentation system to allow for centralized and accessible storage of support for programmatic costs by all appropriate personnel who interact with external auditors, including local funding sources. Management should retain journal entry documentation for all types of journal entries impacting Federal contracts. View of Responsible Official: We agree and the lack of implementation is a direct result of turnover (resignation of newly hired Director of Budgeting and Compliance ). A new search is currently underway. Once a new Director is hired, process documentation and a central database repository will be fully addressed.
AL number and title: WIOA Cluster - 17.258, 17.259 and 17.278 Coronavirus State and Local Fiscal Recovery Funds - 21.027 VA Supportive Services for Veteran Families Program - 64.033 Refugee and Entrant Assistance State/Replacement Designee Administered Programs - 93.566 Federal award identification number and year: N/A Name of federal agency: U.S. Departments of Labor, Treasury, Veteran's Affairs and Health and Human Services Name of pass-through entity: State of California Employment Development Department; County of Los Angeles Workforce Development, Aging, and Community Services Department; City of Los Angeles Economic and Workforce Development Department; Catholic Charities of Los Angeles Repeat finding: No Criteria: Under the Uniform Guidance, specifically 2 CFR 200.430, organizations are permitted to use budgeted amounts to allocate time to Federal programs, as long as there is a process in place to true-up the costs on a regular basis. Condition: In general, JVS personnel prepare manual timesheets to record the actual time worked on the organization’s various programs. No process is currently in place to compare or revise the time if the budgeted time differs from the actual time. Cause: The organization lacked sufficient accounting resources to prepare these updates. Currently, the process would be very manual. Effect or potential effect: Hours charged to certain programs did not agree to the timesheets completed by employees and reviewed by their supervisors. Questioned cost: Estimated questioned costs related to variances in timesheets: Refugee Assistance programs - Known = $1,866, Projected = $24,944 WIOA programs - Known = $168, Projected = $58,485. Context: We tested a total of 114 timesheets and noted variances in 23. We also noted two instances where no timesheets were completed for administrative personnel. Recommendation: Management should institute a reconciliation and update process for the manual timecards. In addition, management should determine whether its electronic timekeeping systems can be reconfigured to allow employees to update their allocations as needed each pay period. View of Responsible Official: We agree with the finding. JVS has been evaluating how to fully address and resolve the issue. Remediation lies in modifying the current payroll platform (Paylocity) to facilitate employees ability to individually update their labor allocations electronically. JVS still does not have a sandbox testing environment to address system capabilities to achieve the objectives.
AL number and title: WIOA Cluster - 17.258, 17.259 and 17.278 Coronavirus State and Local Fiscal Recovery Funds - 21.027 VA Supportive Services for Veteran Families Program - 64.033 Refugee and Entrant Assistance State/Replacement Designee Administered Programs - 93.566 Federal award identification number and year: N/A Name of federal agency: U.S. Departments of Labor, Treasury, Veteran's Affairs and Health and Human Services Name of pass-through entities: State of California Employment Development Department; County of Los Angeles Workforce Development, Aging, and Community Services Department; City of Los Angeles Economic and Workforce Development Department; Catholic Charities of Los Angeles Repeat finding: Yes. 2022-007 Criteria: Under the Uniform Guidance, specifically 2 CFR 200.403(g), charges to Federal awards must be documented and supported by a system of internal controls, including documentation of approval of expenses. Condition: Documentation for certain expenses was unavailable or incomplete. Cause: Management currently lacks sufficient resources to locate all supporting documentation. The work from home environment has impacted existing processes and retention of information, along with turnover in the accounting department. Effect or potential effect: Original calculations of certain cost allocations were not retained and could not be reperformed. The amounts we noted were not material, but this is a repeat finding that has not been fully remediated. Questioned costs: None to be reported. Context: During 2023, the documentation for allocation of certain shared costs, such as rent, were not fully retained. Recommendation: Management should revise its transaction documentation system to allow for centralized and accessible storage of support for programmatic costs by all appropriate personnel who interact with external auditors, including local funding sources. Management should retain journal entry documentation for all types of journal entries impacting Federal contracts. View of Responsible Official: We agree and the lack of implementation is a direct result of turnover (resignation of newly hired Director of Budgeting and Compliance ). A new search is currently underway. Once a new Director is hired, process documentation and a central database repository will be fully addressed.
AL number and title: WIOA Cluster - 17.258, 17.259 and 17.278 Coronavirus State and Local Fiscal Recovery Funds - 21.027 VA Supportive Services for Veteran Families Program - 64.033 Refugee and Entrant Assistance State/Replacement Designee Administered Programs - 93.566 Federal award identification number and year: N/A Name of federal agency: U.S. Departments of Labor, Treasury, Veteran's Affairs and Health and Human Services Name of pass-through entity: State of California Employment Development Department; County of Los Angeles Workforce Development, Aging, and Community Services Department; City of Los Angeles Economic and Workforce Development Department; Catholic Charities of Los Angeles Repeat finding: No Criteria: Under the Uniform Guidance, specifically 2 CFR 200.430, organizations are permitted to use budgeted amounts to allocate time to Federal programs, as long as there is a process in place to true-up the costs on a regular basis. Condition: In general, JVS personnel prepare manual timesheets to record the actual time worked on the organization’s various programs. No process is currently in place to compare or revise the time if the budgeted time differs from the actual time. Cause: The organization lacked sufficient accounting resources to prepare these updates. Currently, the process would be very manual. Effect or potential effect: Hours charged to certain programs did not agree to the timesheets completed by employees and reviewed by their supervisors. Questioned cost: Estimated questioned costs related to variances in timesheets: Refugee Assistance programs - Known = $1,866, Projected = $24,944 WIOA programs - Known = $168, Projected = $58,485. Context: We tested a total of 114 timesheets and noted variances in 23. We also noted two instances where no timesheets were completed for administrative personnel. Recommendation: Management should institute a reconciliation and update process for the manual timecards. In addition, management should determine whether its electronic timekeeping systems can be reconfigured to allow employees to update their allocations as needed each pay period. View of Responsible Official: We agree with the finding. JVS has been evaluating how to fully address and resolve the issue. Remediation lies in modifying the current payroll platform (Paylocity) to facilitate employees ability to individually update their labor allocations electronically. JVS still does not have a sandbox testing environment to address system capabilities to achieve the objectives.
AL number and title: WIOA Cluster - 17.258, 17.259 and 17.278 Coronavirus State and Local Fiscal Recovery Funds - 21.027 VA Supportive Services for Veteran Families Program - 64.033 Refugee and Entrant Assistance State/Replacement Designee Administered Programs - 93.566 Federal award identification number and year: N/A Name of federal agency: U.S. Departments of Labor, Treasury, Veteran's Affairs and Health and Human Services Name of pass-through entities: State of California Employment Development Department; County of Los Angeles Workforce Development, Aging, and Community Services Department; City of Los Angeles Economic and Workforce Development Department; Catholic Charities of Los Angeles Repeat finding: Yes. 2022-007 Criteria: Under the Uniform Guidance, specifically 2 CFR 200.403(g), charges to Federal awards must be documented and supported by a system of internal controls, including documentation of approval of expenses. Condition: Documentation for certain expenses was unavailable or incomplete. Cause: Management currently lacks sufficient resources to locate all supporting documentation. The work from home environment has impacted existing processes and retention of information, along with turnover in the accounting department. Effect or potential effect: Original calculations of certain cost allocations were not retained and could not be reperformed. The amounts we noted were not material, but this is a repeat finding that has not been fully remediated. Questioned costs: None to be reported. Context: During 2023, the documentation for allocation of certain shared costs, such as rent, were not fully retained. Recommendation: Management should revise its transaction documentation system to allow for centralized and accessible storage of support for programmatic costs by all appropriate personnel who interact with external auditors, including local funding sources. Management should retain journal entry documentation for all types of journal entries impacting Federal contracts. View of Responsible Official: We agree and the lack of implementation is a direct result of turnover (resignation of newly hired Director of Budgeting and Compliance ). A new search is currently underway. Once a new Director is hired, process documentation and a central database repository will be fully addressed.
AL number and title: WIOA Cluster - 17.258, 17.259 and 17.278 Coronavirus State and Local Fiscal Recovery Funds - 21.027 VA Supportive Services for Veteran Families Program - 64.033 Refugee and Entrant Assistance State/Replacement Designee Administered Programs - 93.566 Federal award identification number and year: N/A Name of federal agency: U.S. Departments of Labor, Treasury, Veteran's Affairs and Health and Human Services Name of pass-through entity: State of California Employment Development Department; County of Los Angeles Workforce Development, Aging, and Community Services Department; City of Los Angeles Economic and Workforce Development Department; Catholic Charities of Los Angeles Repeat finding: No Criteria: Under the Uniform Guidance, specifically 2 CFR 200.430, organizations are permitted to use budgeted amounts to allocate time to Federal programs, as long as there is a process in place to true-up the costs on a regular basis. Condition: In general, JVS personnel prepare manual timesheets to record the actual time worked on the organization’s various programs. No process is currently in place to compare or revise the time if the budgeted time differs from the actual time. Cause: The organization lacked sufficient accounting resources to prepare these updates. Currently, the process would be very manual. Effect or potential effect: Hours charged to certain programs did not agree to the timesheets completed by employees and reviewed by their supervisors. Questioned cost: Estimated questioned costs related to variances in timesheets: Refugee Assistance programs - Known = $1,866, Projected = $24,944 WIOA programs - Known = $168, Projected = $58,485. Context: We tested a total of 114 timesheets and noted variances in 23. We also noted two instances where no timesheets were completed for administrative personnel. Recommendation: Management should institute a reconciliation and update process for the manual timecards. In addition, management should determine whether its electronic timekeeping systems can be reconfigured to allow employees to update their allocations as needed each pay period. View of Responsible Official: We agree with the finding. JVS has been evaluating how to fully address and resolve the issue. Remediation lies in modifying the current payroll platform (Paylocity) to facilitate employees ability to individually update their labor allocations electronically. JVS still does not have a sandbox testing environment to address system capabilities to achieve the objectives.
AL number and title: WIOA Cluster - 17.258, 17.259 and 17.278 Coronavirus State and Local Fiscal Recovery Funds - 21.027 VA Supportive Services for Veteran Families Program - 64.033 Refugee and Entrant Assistance State/Replacement Designee Administered Programs - 93.566 Federal award identification number and year: N/A Name of federal agency: U.S. Departments of Labor, Treasury, Veteran's Affairs and Health and Human Services Name of pass-through entities: State of California Employment Development Department; County of Los Angeles Workforce Development, Aging, and Community Services Department; City of Los Angeles Economic and Workforce Development Department; Catholic Charities of Los Angeles Repeat finding: Yes. 2022-007 Criteria: Under the Uniform Guidance, specifically 2 CFR 200.403(g), charges to Federal awards must be documented and supported by a system of internal controls, including documentation of approval of expenses. Condition: Documentation for certain expenses was unavailable or incomplete. Cause: Management currently lacks sufficient resources to locate all supporting documentation. The work from home environment has impacted existing processes and retention of information, along with turnover in the accounting department. Effect or potential effect: Original calculations of certain cost allocations were not retained and could not be reperformed. The amounts we noted were not material, but this is a repeat finding that has not been fully remediated. Questioned costs: None to be reported. Context: During 2023, the documentation for allocation of certain shared costs, such as rent, were not fully retained. Recommendation: Management should revise its transaction documentation system to allow for centralized and accessible storage of support for programmatic costs by all appropriate personnel who interact with external auditors, including local funding sources. Management should retain journal entry documentation for all types of journal entries impacting Federal contracts. View of Responsible Official: We agree and the lack of implementation is a direct result of turnover (resignation of newly hired Director of Budgeting and Compliance ). A new search is currently underway. Once a new Director is hired, process documentation and a central database repository will be fully addressed.
AL number and title: WIOA Cluster - 17.258, 17.259 and 17.278 Coronavirus State and Local Fiscal Recovery Funds - 21.027 VA Supportive Services for Veteran Families Program - 64.033 Refugee and Entrant Assistance State/Replacement Designee Administered Programs - 93.566 Federal award identification number and year: N/A Name of federal agency: U.S. Departments of Labor, Treasury, Veteran's Affairs and Health and Human Services Name of pass-through entity: State of California Employment Development Department; County of Los Angeles Workforce Development, Aging, and Community Services Department; City of Los Angeles Economic and Workforce Development Department; Catholic Charities of Los Angeles Repeat finding: No Criteria: Under the Uniform Guidance, specifically 2 CFR 200.430, organizations are permitted to use budgeted amounts to allocate time to Federal programs, as long as there is a process in place to true-up the costs on a regular basis. Condition: In general, JVS personnel prepare manual timesheets to record the actual time worked on the organization’s various programs. No process is currently in place to compare or revise the time if the budgeted time differs from the actual time. Cause: The organization lacked sufficient accounting resources to prepare these updates. Currently, the process would be very manual. Effect or potential effect: Hours charged to certain programs did not agree to the timesheets completed by employees and reviewed by their supervisors. Questioned cost: Estimated questioned costs related to variances in timesheets: Refugee Assistance programs - Known = $1,866, Projected = $24,944 WIOA programs - Known = $168, Projected = $58,485. Context: We tested a total of 114 timesheets and noted variances in 23. We also noted two instances where no timesheets were completed for administrative personnel. Recommendation: Management should institute a reconciliation and update process for the manual timecards. In addition, management should determine whether its electronic timekeeping systems can be reconfigured to allow employees to update their allocations as needed each pay period. View of Responsible Official: We agree with the finding. JVS has been evaluating how to fully address and resolve the issue. Remediation lies in modifying the current payroll platform (Paylocity) to facilitate employees ability to individually update their labor allocations electronically. JVS still does not have a sandbox testing environment to address system capabilities to achieve the objectives.
AL number and title: WIOA Cluster - 17.258, 17.259 and 17.278 Federal award identification number and year: N/A Name of federal agency: U.S. Department of Labor Name of pass-through entity: State of California Employment Development Department; County of Los Angeles Workforce Development, Aging, and Community Services Department; City of Los Angeles Economic and Workforce Development Department; Catholic Charities of Los Angeles Repeat finding: No Criteria: The WIOA Cluster has various eligibility requirements, which JVS is required to check in order to provide services. Condition: JVS could not locate three of the 25 eligibility selections made for this program. All other programs with eligibility requirements were able to locate all necessary documentation. Cause: Management currently lacks sufficient resources to locate all supporting documentation. The work from home environment has impacted existing processes and retention of information, along with turnover in the accounting department. Possible effect: The absence of documentation could result in providing service to ineligible recipients. Questioned cost: N/A Recommendation: Management should revise its transaction documentation system to allow for centralized and accessible storage of support for programmatic costs by all appropriate personnel who interact with external auditors, including local funding sources. Management should retain journal entry documentation for all types of journal entries impacting Federal contracts Views of responsible officials: We have created an eligibility checklist for the WIOA programs that lists all required documentation. Additional training will be provided to the WIOA intake team on required documentation. We will implement period spot checks to ensure all necessary documentation for eligibility are completed.
AL number and title: WIOA Cluster - 17.258, 17.259 and 17.278 Coronavirus State and Local Fiscal Recovery Funds - 21.027 VA Supportive Services for Veteran Families Program - 64.033 Refugee and Entrant Assistance State/Replacement Designee Administered Programs - 93.566 Federal award identification number and year: N/A Name of federal agency: U.S. Departments of Labor, Treasury, Veteran's Affairs and Health and Human Services Name of pass-through entities: State of California Employment Development Department; County of Los Angeles Workforce Development, Aging, and Community Services Department; City of Los Angeles Economic and Workforce Development Department; Catholic Charities of Los Angeles Repeat finding: Yes. 2022-007 Criteria: Under the Uniform Guidance, specifically 2 CFR 200.403(g), charges to Federal awards must be documented and supported by a system of internal controls, including documentation of approval of expenses. Condition: Documentation for certain expenses was unavailable or incomplete. Cause: Management currently lacks sufficient resources to locate all supporting documentation. The work from home environment has impacted existing processes and retention of information, along with turnover in the accounting department. Effect or potential effect: Original calculations of certain cost allocations were not retained and could not be reperformed. The amounts we noted were not material, but this is a repeat finding that has not been fully remediated. Questioned costs: None to be reported. Context: During 2023, the documentation for allocation of certain shared costs, such as rent, were not fully retained. Recommendation: Management should revise its transaction documentation system to allow for centralized and accessible storage of support for programmatic costs by all appropriate personnel who interact with external auditors, including local funding sources. Management should retain journal entry documentation for all types of journal entries impacting Federal contracts. View of Responsible Official: We agree and the lack of implementation is a direct result of turnover (resignation of newly hired Director of Budgeting and Compliance ). A new search is currently underway. Once a new Director is hired, process documentation and a central database repository will be fully addressed.
AL number and title: WIOA Cluster - 17.258, 17.259 and 17.278 Coronavirus State and Local Fiscal Recovery Funds - 21.027 VA Supportive Services for Veteran Families Program - 64.033 Refugee and Entrant Assistance State/Replacement Designee Administered Programs - 93.566 Federal award identification number and year: N/A Name of federal agency: U.S. Departments of Labor, Treasury, Veteran's Affairs and Health and Human Services Name of pass-through entity: State of California Employment Development Department; County of Los Angeles Workforce Development, Aging, and Community Services Department; City of Los Angeles Economic and Workforce Development Department; Catholic Charities of Los Angeles Repeat finding: No Criteria: Under the Uniform Guidance, specifically 2 CFR 200.430, organizations are permitted to use budgeted amounts to allocate time to Federal programs, as long as there is a process in place to true-up the costs on a regular basis. Condition: In general, JVS personnel prepare manual timesheets to record the actual time worked on the organization’s various programs. No process is currently in place to compare or revise the time if the budgeted time differs from the actual time. Cause: The organization lacked sufficient accounting resources to prepare these updates. Currently, the process would be very manual. Effect or potential effect: Hours charged to certain programs did not agree to the timesheets completed by employees and reviewed by their supervisors. Questioned cost: Estimated questioned costs related to variances in timesheets: Refugee Assistance programs - Known = $1,866, Projected = $24,944 WIOA programs - Known = $168, Projected = $58,485. Context: We tested a total of 114 timesheets and noted variances in 23. We also noted two instances where no timesheets were completed for administrative personnel. Recommendation: Management should institute a reconciliation and update process for the manual timecards. In addition, management should determine whether its electronic timekeeping systems can be reconfigured to allow employees to update their allocations as needed each pay period. View of Responsible Official: We agree with the finding. JVS has been evaluating how to fully address and resolve the issue. Remediation lies in modifying the current payroll platform (Paylocity) to facilitate employees ability to individually update their labor allocations electronically. JVS still does not have a sandbox testing environment to address system capabilities to achieve the objectives.
AL number and title: WIOA Cluster - 17.258, 17.259 and 17.278 Coronavirus State and Local Fiscal Recovery Funds - 21.027 VA Supportive Services for Veteran Families Program - 64.033 Refugee and Entrant Assistance State/Replacement Designee Administered Programs - 93.566 Federal award identification number and year: N/A Name of federal agency: U.S. Departments of Labor, Treasury, Veteran's Affairs and Health and Human Services Name of pass-through entities: State of California Employment Development Department; County of Los Angeles Workforce Development, Aging, and Community Services Department; City of Los Angeles Economic and Workforce Development Department; Catholic Charities of Los Angeles Repeat finding: Yes. 2022-007 Criteria: Under the Uniform Guidance, specifically 2 CFR 200.403(g), charges to Federal awards must be documented and supported by a system of internal controls, including documentation of approval of expenses. Condition: Documentation for certain expenses was unavailable or incomplete. Cause: Management currently lacks sufficient resources to locate all supporting documentation. The work from home environment has impacted existing processes and retention of information, along with turnover in the accounting department. Effect or potential effect: Original calculations of certain cost allocations were not retained and could not be reperformed. The amounts we noted were not material, but this is a repeat finding that has not been fully remediated. Questioned costs: None to be reported. Context: During 2023, the documentation for allocation of certain shared costs, such as rent, were not fully retained. Recommendation: Management should revise its transaction documentation system to allow for centralized and accessible storage of support for programmatic costs by all appropriate personnel who interact with external auditors, including local funding sources. Management should retain journal entry documentation for all types of journal entries impacting Federal contracts. View of Responsible Official: We agree and the lack of implementation is a direct result of turnover (resignation of newly hired Director of Budgeting and Compliance ). A new search is currently underway. Once a new Director is hired, process documentation and a central database repository will be fully addressed.
AL number and title: WIOA Cluster - 17.258, 17.259 and 17.278 Coronavirus State and Local Fiscal Recovery Funds - 21.027 VA Supportive Services for Veteran Families Program - 64.033 Refugee and Entrant Assistance State/Replacement Designee Administered Programs - 93.566 Federal award identification number and year: N/A Name of federal agency: U.S. Departments of Labor, Treasury, Veteran's Affairs and Health and Human Services Name of pass-through entity: State of California Employment Development Department; County of Los Angeles Workforce Development, Aging, and Community Services Department; City of Los Angeles Economic and Workforce Development Department; Catholic Charities of Los Angeles Repeat finding: No Criteria: Under the Uniform Guidance, specifically 2 CFR 200.430, organizations are permitted to use budgeted amounts to allocate time to Federal programs, as long as there is a process in place to true-up the costs on a regular basis. Condition: In general, JVS personnel prepare manual timesheets to record the actual time worked on the organization’s various programs. No process is currently in place to compare or revise the time if the budgeted time differs from the actual time. Cause: The organization lacked sufficient accounting resources to prepare these updates. Currently, the process would be very manual. Effect or potential effect: Hours charged to certain programs did not agree to the timesheets completed by employees and reviewed by their supervisors. Questioned cost: Estimated questioned costs related to variances in timesheets: Refugee Assistance programs - Known = $1,866, Projected = $24,944 WIOA programs - Known = $168, Projected = $58,485. Context: We tested a total of 114 timesheets and noted variances in 23. We also noted two instances where no timesheets were completed for administrative personnel. Recommendation: Management should institute a reconciliation and update process for the manual timecards. In addition, management should determine whether its electronic timekeeping systems can be reconfigured to allow employees to update their allocations as needed each pay period. View of Responsible Official: We agree with the finding. JVS has been evaluating how to fully address and resolve the issue. Remediation lies in modifying the current payroll platform (Paylocity) to facilitate employees ability to individually update their labor allocations electronically. JVS still does not have a sandbox testing environment to address system capabilities to achieve the objectives.
AL number and title: WIOA Cluster - 17.258, 17.259 and 17.278 Coronavirus State and Local Fiscal Recovery Funds - 21.027 VA Supportive Services for Veteran Families Program - 64.033 Refugee and Entrant Assistance State/Replacement Designee Administered Programs - 93.566 Federal award identification number and year: N/A Name of federal agency: U.S. Departments of Labor, Treasury, Veteran's Affairs and Health and Human Services Name of pass-through entities: State of California Employment Development Department; County of Los Angeles Workforce Development, Aging, and Community Services Department; City of Los Angeles Economic and Workforce Development Department; Catholic Charities of Los Angeles Repeat finding: Yes. 2022-007 Criteria: Under the Uniform Guidance, specifically 2 CFR 200.403(g), charges to Federal awards must be documented and supported by a system of internal controls, including documentation of approval of expenses. Condition: Documentation for certain expenses was unavailable or incomplete. Cause: Management currently lacks sufficient resources to locate all supporting documentation. The work from home environment has impacted existing processes and retention of information, along with turnover in the accounting department. Effect or potential effect: Original calculations of certain cost allocations were not retained and could not be reperformed. The amounts we noted were not material, but this is a repeat finding that has not been fully remediated. Questioned costs: None to be reported. Context: During 2023, the documentation for allocation of certain shared costs, such as rent, were not fully retained. Recommendation: Management should revise its transaction documentation system to allow for centralized and accessible storage of support for programmatic costs by all appropriate personnel who interact with external auditors, including local funding sources. Management should retain journal entry documentation for all types of journal entries impacting Federal contracts. View of Responsible Official: We agree and the lack of implementation is a direct result of turnover (resignation of newly hired Director of Budgeting and Compliance ). A new search is currently underway. Once a new Director is hired, process documentation and a central database repository will be fully addressed.
AL number and title: WIOA Cluster - 17.258, 17.259 and 17.278 Coronavirus State and Local Fiscal Recovery Funds - 21.027 VA Supportive Services for Veteran Families Program - 64.033 Refugee and Entrant Assistance State/Replacement Designee Administered Programs - 93.566 Federal award identification number and year: N/A Name of federal agency: U.S. Departments of Labor, Treasury, Veteran's Affairs and Health and Human Services Name of pass-through entity: State of California Employment Development Department; County of Los Angeles Workforce Development, Aging, and Community Services Department; City of Los Angeles Economic and Workforce Development Department; Catholic Charities of Los Angeles Repeat finding: No Criteria: Under the Uniform Guidance, specifically 2 CFR 200.430, organizations are permitted to use budgeted amounts to allocate time to Federal programs, as long as there is a process in place to true-up the costs on a regular basis. Condition: In general, JVS personnel prepare manual timesheets to record the actual time worked on the organization’s various programs. No process is currently in place to compare or revise the time if the budgeted time differs from the actual time. Cause: The organization lacked sufficient accounting resources to prepare these updates. Currently, the process would be very manual. Effect or potential effect: Hours charged to certain programs did not agree to the timesheets completed by employees and reviewed by their supervisors. Questioned cost: Estimated questioned costs related to variances in timesheets: Refugee Assistance programs - Known = $1,866, Projected = $24,944 WIOA programs - Known = $168, Projected = $58,485. Context: We tested a total of 114 timesheets and noted variances in 23. We also noted two instances where no timesheets were completed for administrative personnel. Recommendation: Management should institute a reconciliation and update process for the manual timecards. In addition, management should determine whether its electronic timekeeping systems can be reconfigured to allow employees to update their allocations as needed each pay period. View of Responsible Official: We agree with the finding. JVS has been evaluating how to fully address and resolve the issue. Remediation lies in modifying the current payroll platform (Paylocity) to facilitate employees ability to individually update their labor allocations electronically. JVS still does not have a sandbox testing environment to address system capabilities to achieve the objectives.