FAC Explorer

Audit 329715

FY End
2024-06-30
Total Expended
$8.14M
Findings
4
Programs
9
Organization: The Skillsource Group, Inc. (VA)
Year: 2024 Accepted: 2024-11-25
Auditor: Gelman Rosenberg & Freedman

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
511963 2024-001 Significant Deficiency - P
511964 2024-001 Significant Deficiency - P
1088405 2024-001 Significant Deficiency - P
1088406 2024-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
17.235 Senior Community Service Employment Program $1.43M Yes 0
17.258 Wioa Adult Program $1.42M - 0
17.259 Wioa Youth Activities $711,384 - 0
21.019 Coronavirus Relief Fund $583,327 Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $524,021 - 1
17.278 Wioa Dislocated Worker Formula Grants $160,114 - 0
93.558 Temporary Assistance for Needy Families $150,386 - 0
17.268 H-1b Job Training Grants $96,203 - 0
17.277 Wioa National Dislocated Worker Grants / Wia National Emergency Grants $571 - 0

Contacts

Name Title Type
JYLJZYB3G613 David Hunn Auditee
7038273782 Jennifer McCahill Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: Y Rate Explanation: Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non Profit Organizations, or 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 (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. SkillSource has elected to use the de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the Federal award activity of SkillSource under programs of the Federal Government for the year ended June 30, 2024. Information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Schedule presents only a selected portion of the operations of SkillSource; accordingly, it is not intended to and does not present the financial position, changes in net assets or cash flows of SkillSource.
Title: Note 2. Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: Y Rate Explanation: Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non Profit Organizations, or 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 (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. SkillSource has elected to use the de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or 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 (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. SkillSource has elected to use the de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2024-001
Finding: 2024-001: Improper Preparation of the Schedule of Expenditures of Federal Awards Information on the Federal Program: Assistance Listing Numbers 21.027 and 21.019 Criteria or Specific Requirement: According to 2 CFR 200.303, non-Federal entities should establish and maintain effective internal controls over compliance and financial management and reporting. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). These controls should include timely reconciliation of Federal grant expenditures to ensure that the Schedule of Expenditures of Federal Awards (SEFA) is accurate and complete. Condition: During our audit procedures over the SEFA, we noticed that one Federal award (ALN 21.027) was not included on the SEFA when it should have been included. In addition, one award was improperly labeled as being a part of ALN 21.027, when it was in fact determined to be included in ALN 21.019. We also discovered another award was included in the SEFA, when it was determined that the award was not Federally funded and should have been removed from the SEFA. Cause: The identified condition was attributable to lack of sufficient internal control and review procedures in place over the SEFA. The award not included on the SEFA when it should have been was tracked within the accounting system as a Federal award, but was not properly recorded on the SEFA. The award tracked with the incorrect ALN and the award that was recorded on the SEFA when it should have been removed were both caused by error. Effect or Potential Effect: Significant time was required to receive an appropriately completed and accurate SEFA from management during the audit. Failure to provide an accurate SEFA during the audit could result in an incorrect major program determination and incomplete testing over the SEFA. Questioned Costs: N/A - Management ultimately corrected the errors identified during preparation of the SEFA. Context: We test the accuracy of the SEFA information by tracing to the grant agreements. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend that management design and implement a procedure to ensure that the SEFA, once prepared by the accounting team, is reviewed and approved by the Director of Operations to ensure that all Federal awards are properly included and tracked on the SEFA.
Finding 2024-001
Finding: 2024-001: Improper Preparation of the Schedule of Expenditures of Federal Awards Information on the Federal Program: Assistance Listing Numbers 21.027 and 21.019 Criteria or Specific Requirement: According to 2 CFR 200.303, non-Federal entities should establish and maintain effective internal controls over compliance and financial management and reporting. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). These controls should include timely reconciliation of Federal grant expenditures to ensure that the Schedule of Expenditures of Federal Awards (SEFA) is accurate and complete. Condition: During our audit procedures over the SEFA, we noticed that one Federal award (ALN 21.027) was not included on the SEFA when it should have been included. In addition, one award was improperly labeled as being a part of ALN 21.027, when it was in fact determined to be included in ALN 21.019. We also discovered another award was included in the SEFA, when it was determined that the award was not Federally funded and should have been removed from the SEFA. Cause: The identified condition was attributable to lack of sufficient internal control and review procedures in place over the SEFA. The award not included on the SEFA when it should have been was tracked within the accounting system as a Federal award, but was not properly recorded on the SEFA. The award tracked with the incorrect ALN and the award that was recorded on the SEFA when it should have been removed were both caused by error. Effect or Potential Effect: Significant time was required to receive an appropriately completed and accurate SEFA from management during the audit. Failure to provide an accurate SEFA during the audit could result in an incorrect major program determination and incomplete testing over the SEFA. Questioned Costs: N/A - Management ultimately corrected the errors identified during preparation of the SEFA. Context: We test the accuracy of the SEFA information by tracing to the grant agreements. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend that management design and implement a procedure to ensure that the SEFA, once prepared by the accounting team, is reviewed and approved by the Director of Operations to ensure that all Federal awards are properly included and tracked on the SEFA.
Finding 2024-001
Finding: 2024-001: Improper Preparation of the Schedule of Expenditures of Federal Awards Information on the Federal Program: Assistance Listing Numbers 21.027 and 21.019 Criteria or Specific Requirement: According to 2 CFR 200.303, non-Federal entities should establish and maintain effective internal controls over compliance and financial management and reporting. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). These controls should include timely reconciliation of Federal grant expenditures to ensure that the Schedule of Expenditures of Federal Awards (SEFA) is accurate and complete. Condition: During our audit procedures over the SEFA, we noticed that one Federal award (ALN 21.027) was not included on the SEFA when it should have been included. In addition, one award was improperly labeled as being a part of ALN 21.027, when it was in fact determined to be included in ALN 21.019. We also discovered another award was included in the SEFA, when it was determined that the award was not Federally funded and should have been removed from the SEFA. Cause: The identified condition was attributable to lack of sufficient internal control and review procedures in place over the SEFA. The award not included on the SEFA when it should have been was tracked within the accounting system as a Federal award, but was not properly recorded on the SEFA. The award tracked with the incorrect ALN and the award that was recorded on the SEFA when it should have been removed were both caused by error. Effect or Potential Effect: Significant time was required to receive an appropriately completed and accurate SEFA from management during the audit. Failure to provide an accurate SEFA during the audit could result in an incorrect major program determination and incomplete testing over the SEFA. Questioned Costs: N/A - Management ultimately corrected the errors identified during preparation of the SEFA. Context: We test the accuracy of the SEFA information by tracing to the grant agreements. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend that management design and implement a procedure to ensure that the SEFA, once prepared by the accounting team, is reviewed and approved by the Director of Operations to ensure that all Federal awards are properly included and tracked on the SEFA.
Finding 2024-001
Finding: 2024-001: Improper Preparation of the Schedule of Expenditures of Federal Awards Information on the Federal Program: Assistance Listing Numbers 21.027 and 21.019 Criteria or Specific Requirement: According to 2 CFR 200.303, non-Federal entities should establish and maintain effective internal controls over compliance and financial management and reporting. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). These controls should include timely reconciliation of Federal grant expenditures to ensure that the Schedule of Expenditures of Federal Awards (SEFA) is accurate and complete. Condition: During our audit procedures over the SEFA, we noticed that one Federal award (ALN 21.027) was not included on the SEFA when it should have been included. In addition, one award was improperly labeled as being a part of ALN 21.027, when it was in fact determined to be included in ALN 21.019. We also discovered another award was included in the SEFA, when it was determined that the award was not Federally funded and should have been removed from the SEFA. Cause: The identified condition was attributable to lack of sufficient internal control and review procedures in place over the SEFA. The award not included on the SEFA when it should have been was tracked within the accounting system as a Federal award, but was not properly recorded on the SEFA. The award tracked with the incorrect ALN and the award that was recorded on the SEFA when it should have been removed were both caused by error. Effect or Potential Effect: Significant time was required to receive an appropriately completed and accurate SEFA from management during the audit. Failure to provide an accurate SEFA during the audit could result in an incorrect major program determination and incomplete testing over the SEFA. Questioned Costs: N/A - Management ultimately corrected the errors identified during preparation of the SEFA. Context: We test the accuracy of the SEFA information by tracing to the grant agreements. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend that management design and implement a procedure to ensure that the SEFA, once prepared by the accounting team, is reviewed and approved by the Director of Operations to ensure that all Federal awards are properly included and tracked on the SEFA.