FAC Explorer

Audit 330594

FY End
2024-06-30
Total Expended
$7.84M
Findings
20
Programs
6
Organization: Rural Minnesota Cep, Inc. (MN)
Year: 2024 Accepted: 2024-12-03
Auditor: Bergankdv LTD

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
512839 2024-002 Significant Deficiency - L
512840 2024-002 Significant Deficiency - L
512841 2024-002 Significant Deficiency - L
512842 2024-002 Significant Deficiency - L
512843 2024-002 Significant Deficiency - L
512844 2024-002 Significant Deficiency - L
512845 2024-002 Significant Deficiency - L
512846 2024-002 Significant Deficiency - L
512847 2024-002 Significant Deficiency - L
512848 2024-002 Significant Deficiency - L
1089281 2024-002 Significant Deficiency - L
1089282 2024-002 Significant Deficiency - L
1089283 2024-002 Significant Deficiency - L
1089284 2024-002 Significant Deficiency - L
1089285 2024-002 Significant Deficiency - L
1089286 2024-002 Significant Deficiency - L
1089287 2024-002 Significant Deficiency - L
1089288 2024-002 Significant Deficiency - L
1089289 2024-002 Significant Deficiency - L
1089290 2024-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
17.259 Wioa Youth Activities $1.11M Yes 1
17.235 Senior Community Service Employment Program $137,914 - 0
17.278 Wioa Dislocated Worker Formula Grants $57,426 Yes 1
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $17,068 - 0
17.258 Wioa Adult Program $16,580 Yes 1
93.558 Temporary Assistance for Needy Families $12,482 - 0

Contacts

Name Title Type
GNYSZLNQ8M36 Tina Jaster Auditee
2188470720 Marie Primus Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting which conform to accounting principles generally accepted in the United States of America. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Rural Minnesota CEP, Inc. has elected not to use the 10-percent 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 Rural Minnesota CEP, Inc. under programs of the federal government for the year ended June 30, 2024. 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 Rural Minnesota CEP, Inc. it is not intended to and does not present the financial position, changes in net assets, or cash flows of Rural Minnesota CEP, Inc.
Title: COUNTY FUNDED PROGRAMS Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting which conform to accounting principles generally accepted in the United States of America. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Rural Minnesota CEP, Inc. has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The counties funding the MN Family Investment Program (TANF) and the Diversionary Work Program include Becker, Cass, Clay, Clearwater, Crow Wing, Douglas, Hubbard, Lake of the Woods, Morrison, Otter Tail, Todd, Traverse, Wadena, Western Prairie (Grant and Pope), and Wilkin.
Title: PASS THROUGH ENTITY IDENTIFICATION NUMBERS Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting which conform to accounting principles generally accepted in the United States of America. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Rural Minnesota CEP, Inc. has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Several of the programs, grants, and/or awards included in the schedule are missing the pass-through entity identification numbers. The missing numbers are due to the pass-through entities not providing the pass-through entity identification numbers.

Finding Details

Finding 2024-002
Assistance listing number(s): 17.258, 17.259, and 17.278 Federal Program Name or Cluster: WIOA Cluster Name of Federal Agency: United States Department of Labor Name of Pass-Through Entity: Minnesota DEED Compliance Requirement/Internal Control over Compliance: Reporting Criteria Organizations are required to maintain effective internal controls over financial reporting to ensure that financial statements and other reports are accurate, complete, and submitted in compliance with applicable regulations. An independent review process is a key internal control to detect and correct errors prior to submission. Condition/Context We noted that financial reports submitted during the year were not subject to an independent review process before submission. Cause The Organization has not implemented a formal policy or procedure requiring an independent review of financial reports prior to submission. Effect Failure to perform an independent review increases the risk of material misstatements in financial reports, noncompliance with reporting requirements, and reduced stakeholder confidence in the reliability of the Organization’s financial information. Questioned Costs No questioned costs were identified. Recommendation We recommend that management implement a formal policy requiring all financial reports to undergo an independent review prior to submission. This process should include a documented review checklist and sign-off by a qualified individual who is independent of the report preparation process. Management’s Response Management agrees with the finding and will implement procedures to ensure independent reviews of financial reports are conducted before submission. The Organization will designate a responsible reviewer and implement a review checklist immediately.
Finding 2024-002
Assistance listing number(s): 17.258, 17.259, and 17.278 Federal Program Name or Cluster: WIOA Cluster Name of Federal Agency: United States Department of Labor Name of Pass-Through Entity: Minnesota DEED Compliance Requirement/Internal Control over Compliance: Reporting Criteria Organizations are required to maintain effective internal controls over financial reporting to ensure that financial statements and other reports are accurate, complete, and submitted in compliance with applicable regulations. An independent review process is a key internal control to detect and correct errors prior to submission. Condition/Context We noted that financial reports submitted during the year were not subject to an independent review process before submission. Cause The Organization has not implemented a formal policy or procedure requiring an independent review of financial reports prior to submission. Effect Failure to perform an independent review increases the risk of material misstatements in financial reports, noncompliance with reporting requirements, and reduced stakeholder confidence in the reliability of the Organization’s financial information. Questioned Costs No questioned costs were identified. Recommendation We recommend that management implement a formal policy requiring all financial reports to undergo an independent review prior to submission. This process should include a documented review checklist and sign-off by a qualified individual who is independent of the report preparation process. Management’s Response Management agrees with the finding and will implement procedures to ensure independent reviews of financial reports are conducted before submission. The Organization will designate a responsible reviewer and implement a review checklist immediately.
Finding 2024-002
Assistance listing number(s): 17.258, 17.259, and 17.278 Federal Program Name or Cluster: WIOA Cluster Name of Federal Agency: United States Department of Labor Name of Pass-Through Entity: Minnesota DEED Compliance Requirement/Internal Control over Compliance: Reporting Criteria Organizations are required to maintain effective internal controls over financial reporting to ensure that financial statements and other reports are accurate, complete, and submitted in compliance with applicable regulations. An independent review process is a key internal control to detect and correct errors prior to submission. Condition/Context We noted that financial reports submitted during the year were not subject to an independent review process before submission. Cause The Organization has not implemented a formal policy or procedure requiring an independent review of financial reports prior to submission. Effect Failure to perform an independent review increases the risk of material misstatements in financial reports, noncompliance with reporting requirements, and reduced stakeholder confidence in the reliability of the Organization’s financial information. Questioned Costs No questioned costs were identified. Recommendation We recommend that management implement a formal policy requiring all financial reports to undergo an independent review prior to submission. This process should include a documented review checklist and sign-off by a qualified individual who is independent of the report preparation process. Management’s Response Management agrees with the finding and will implement procedures to ensure independent reviews of financial reports are conducted before submission. The Organization will designate a responsible reviewer and implement a review checklist immediately.
Finding 2024-002
Assistance listing number(s): 17.258, 17.259, and 17.278 Federal Program Name or Cluster: WIOA Cluster Name of Federal Agency: United States Department of Labor Name of Pass-Through Entity: Minnesota DEED Compliance Requirement/Internal Control over Compliance: Reporting Criteria Organizations are required to maintain effective internal controls over financial reporting to ensure that financial statements and other reports are accurate, complete, and submitted in compliance with applicable regulations. An independent review process is a key internal control to detect and correct errors prior to submission. Condition/Context We noted that financial reports submitted during the year were not subject to an independent review process before submission. Cause The Organization has not implemented a formal policy or procedure requiring an independent review of financial reports prior to submission. Effect Failure to perform an independent review increases the risk of material misstatements in financial reports, noncompliance with reporting requirements, and reduced stakeholder confidence in the reliability of the Organization’s financial information. Questioned Costs No questioned costs were identified. Recommendation We recommend that management implement a formal policy requiring all financial reports to undergo an independent review prior to submission. This process should include a documented review checklist and sign-off by a qualified individual who is independent of the report preparation process. Management’s Response Management agrees with the finding and will implement procedures to ensure independent reviews of financial reports are conducted before submission. The Organization will designate a responsible reviewer and implement a review checklist immediately.
Finding 2024-002
Assistance listing number(s): 17.258, 17.259, and 17.278 Federal Program Name or Cluster: WIOA Cluster Name of Federal Agency: United States Department of Labor Name of Pass-Through Entity: Minnesota DEED Compliance Requirement/Internal Control over Compliance: Reporting Criteria Organizations are required to maintain effective internal controls over financial reporting to ensure that financial statements and other reports are accurate, complete, and submitted in compliance with applicable regulations. An independent review process is a key internal control to detect and correct errors prior to submission. Condition/Context We noted that financial reports submitted during the year were not subject to an independent review process before submission. Cause The Organization has not implemented a formal policy or procedure requiring an independent review of financial reports prior to submission. Effect Failure to perform an independent review increases the risk of material misstatements in financial reports, noncompliance with reporting requirements, and reduced stakeholder confidence in the reliability of the Organization’s financial information. Questioned Costs No questioned costs were identified. Recommendation We recommend that management implement a formal policy requiring all financial reports to undergo an independent review prior to submission. This process should include a documented review checklist and sign-off by a qualified individual who is independent of the report preparation process. Management’s Response Management agrees with the finding and will implement procedures to ensure independent reviews of financial reports are conducted before submission. The Organization will designate a responsible reviewer and implement a review checklist immediately.
Finding 2024-002
Assistance listing number(s): 17.258, 17.259, and 17.278 Federal Program Name or Cluster: WIOA Cluster Name of Federal Agency: United States Department of Labor Name of Pass-Through Entity: Minnesota DEED Compliance Requirement/Internal Control over Compliance: Reporting Criteria Organizations are required to maintain effective internal controls over financial reporting to ensure that financial statements and other reports are accurate, complete, and submitted in compliance with applicable regulations. An independent review process is a key internal control to detect and correct errors prior to submission. Condition/Context We noted that financial reports submitted during the year were not subject to an independent review process before submission. Cause The Organization has not implemented a formal policy or procedure requiring an independent review of financial reports prior to submission. Effect Failure to perform an independent review increases the risk of material misstatements in financial reports, noncompliance with reporting requirements, and reduced stakeholder confidence in the reliability of the Organization’s financial information. Questioned Costs No questioned costs were identified. Recommendation We recommend that management implement a formal policy requiring all financial reports to undergo an independent review prior to submission. This process should include a documented review checklist and sign-off by a qualified individual who is independent of the report preparation process. Management’s Response Management agrees with the finding and will implement procedures to ensure independent reviews of financial reports are conducted before submission. The Organization will designate a responsible reviewer and implement a review checklist immediately.
Finding 2024-002
Assistance listing number(s): 17.258, 17.259, and 17.278 Federal Program Name or Cluster: WIOA Cluster Name of Federal Agency: United States Department of Labor Name of Pass-Through Entity: Minnesota DEED Compliance Requirement/Internal Control over Compliance: Reporting Criteria Organizations are required to maintain effective internal controls over financial reporting to ensure that financial statements and other reports are accurate, complete, and submitted in compliance with applicable regulations. An independent review process is a key internal control to detect and correct errors prior to submission. Condition/Context We noted that financial reports submitted during the year were not subject to an independent review process before submission. Cause The Organization has not implemented a formal policy or procedure requiring an independent review of financial reports prior to submission. Effect Failure to perform an independent review increases the risk of material misstatements in financial reports, noncompliance with reporting requirements, and reduced stakeholder confidence in the reliability of the Organization’s financial information. Questioned Costs No questioned costs were identified. Recommendation We recommend that management implement a formal policy requiring all financial reports to undergo an independent review prior to submission. This process should include a documented review checklist and sign-off by a qualified individual who is independent of the report preparation process. Management’s Response Management agrees with the finding and will implement procedures to ensure independent reviews of financial reports are conducted before submission. The Organization will designate a responsible reviewer and implement a review checklist immediately.
Finding 2024-002
Assistance listing number(s): 17.258, 17.259, and 17.278 Federal Program Name or Cluster: WIOA Cluster Name of Federal Agency: United States Department of Labor Name of Pass-Through Entity: Minnesota DEED Compliance Requirement/Internal Control over Compliance: Reporting Criteria Organizations are required to maintain effective internal controls over financial reporting to ensure that financial statements and other reports are accurate, complete, and submitted in compliance with applicable regulations. An independent review process is a key internal control to detect and correct errors prior to submission. Condition/Context We noted that financial reports submitted during the year were not subject to an independent review process before submission. Cause The Organization has not implemented a formal policy or procedure requiring an independent review of financial reports prior to submission. Effect Failure to perform an independent review increases the risk of material misstatements in financial reports, noncompliance with reporting requirements, and reduced stakeholder confidence in the reliability of the Organization’s financial information. Questioned Costs No questioned costs were identified. Recommendation We recommend that management implement a formal policy requiring all financial reports to undergo an independent review prior to submission. This process should include a documented review checklist and sign-off by a qualified individual who is independent of the report preparation process. Management’s Response Management agrees with the finding and will implement procedures to ensure independent reviews of financial reports are conducted before submission. The Organization will designate a responsible reviewer and implement a review checklist immediately.
Finding 2024-002
Assistance listing number(s): 17.258, 17.259, and 17.278 Federal Program Name or Cluster: WIOA Cluster Name of Federal Agency: United States Department of Labor Name of Pass-Through Entity: Minnesota DEED Compliance Requirement/Internal Control over Compliance: Reporting Criteria Organizations are required to maintain effective internal controls over financial reporting to ensure that financial statements and other reports are accurate, complete, and submitted in compliance with applicable regulations. An independent review process is a key internal control to detect and correct errors prior to submission. Condition/Context We noted that financial reports submitted during the year were not subject to an independent review process before submission. Cause The Organization has not implemented a formal policy or procedure requiring an independent review of financial reports prior to submission. Effect Failure to perform an independent review increases the risk of material misstatements in financial reports, noncompliance with reporting requirements, and reduced stakeholder confidence in the reliability of the Organization’s financial information. Questioned Costs No questioned costs were identified. Recommendation We recommend that management implement a formal policy requiring all financial reports to undergo an independent review prior to submission. This process should include a documented review checklist and sign-off by a qualified individual who is independent of the report preparation process. Management’s Response Management agrees with the finding and will implement procedures to ensure independent reviews of financial reports are conducted before submission. The Organization will designate a responsible reviewer and implement a review checklist immediately.
Finding 2024-002
Assistance listing number(s): 17.258, 17.259, and 17.278 Federal Program Name or Cluster: WIOA Cluster Name of Federal Agency: United States Department of Labor Name of Pass-Through Entity: Minnesota DEED Compliance Requirement/Internal Control over Compliance: Reporting Criteria Organizations are required to maintain effective internal controls over financial reporting to ensure that financial statements and other reports are accurate, complete, and submitted in compliance with applicable regulations. An independent review process is a key internal control to detect and correct errors prior to submission. Condition/Context We noted that financial reports submitted during the year were not subject to an independent review process before submission. Cause The Organization has not implemented a formal policy or procedure requiring an independent review of financial reports prior to submission. Effect Failure to perform an independent review increases the risk of material misstatements in financial reports, noncompliance with reporting requirements, and reduced stakeholder confidence in the reliability of the Organization’s financial information. Questioned Costs No questioned costs were identified. Recommendation We recommend that management implement a formal policy requiring all financial reports to undergo an independent review prior to submission. This process should include a documented review checklist and sign-off by a qualified individual who is independent of the report preparation process. Management’s Response Management agrees with the finding and will implement procedures to ensure independent reviews of financial reports are conducted before submission. The Organization will designate a responsible reviewer and implement a review checklist immediately.
Finding 2024-002
Assistance listing number(s): 17.258, 17.259, and 17.278 Federal Program Name or Cluster: WIOA Cluster Name of Federal Agency: United States Department of Labor Name of Pass-Through Entity: Minnesota DEED Compliance Requirement/Internal Control over Compliance: Reporting Criteria Organizations are required to maintain effective internal controls over financial reporting to ensure that financial statements and other reports are accurate, complete, and submitted in compliance with applicable regulations. An independent review process is a key internal control to detect and correct errors prior to submission. Condition/Context We noted that financial reports submitted during the year were not subject to an independent review process before submission. Cause The Organization has not implemented a formal policy or procedure requiring an independent review of financial reports prior to submission. Effect Failure to perform an independent review increases the risk of material misstatements in financial reports, noncompliance with reporting requirements, and reduced stakeholder confidence in the reliability of the Organization’s financial information. Questioned Costs No questioned costs were identified. Recommendation We recommend that management implement a formal policy requiring all financial reports to undergo an independent review prior to submission. This process should include a documented review checklist and sign-off by a qualified individual who is independent of the report preparation process. Management’s Response Management agrees with the finding and will implement procedures to ensure independent reviews of financial reports are conducted before submission. The Organization will designate a responsible reviewer and implement a review checklist immediately.
Finding 2024-002
Assistance listing number(s): 17.258, 17.259, and 17.278 Federal Program Name or Cluster: WIOA Cluster Name of Federal Agency: United States Department of Labor Name of Pass-Through Entity: Minnesota DEED Compliance Requirement/Internal Control over Compliance: Reporting Criteria Organizations are required to maintain effective internal controls over financial reporting to ensure that financial statements and other reports are accurate, complete, and submitted in compliance with applicable regulations. An independent review process is a key internal control to detect and correct errors prior to submission. Condition/Context We noted that financial reports submitted during the year were not subject to an independent review process before submission. Cause The Organization has not implemented a formal policy or procedure requiring an independent review of financial reports prior to submission. Effect Failure to perform an independent review increases the risk of material misstatements in financial reports, noncompliance with reporting requirements, and reduced stakeholder confidence in the reliability of the Organization’s financial information. Questioned Costs No questioned costs were identified. Recommendation We recommend that management implement a formal policy requiring all financial reports to undergo an independent review prior to submission. This process should include a documented review checklist and sign-off by a qualified individual who is independent of the report preparation process. Management’s Response Management agrees with the finding and will implement procedures to ensure independent reviews of financial reports are conducted before submission. The Organization will designate a responsible reviewer and implement a review checklist immediately.
Finding 2024-002
Assistance listing number(s): 17.258, 17.259, and 17.278 Federal Program Name or Cluster: WIOA Cluster Name of Federal Agency: United States Department of Labor Name of Pass-Through Entity: Minnesota DEED Compliance Requirement/Internal Control over Compliance: Reporting Criteria Organizations are required to maintain effective internal controls over financial reporting to ensure that financial statements and other reports are accurate, complete, and submitted in compliance with applicable regulations. An independent review process is a key internal control to detect and correct errors prior to submission. Condition/Context We noted that financial reports submitted during the year were not subject to an independent review process before submission. Cause The Organization has not implemented a formal policy or procedure requiring an independent review of financial reports prior to submission. Effect Failure to perform an independent review increases the risk of material misstatements in financial reports, noncompliance with reporting requirements, and reduced stakeholder confidence in the reliability of the Organization’s financial information. Questioned Costs No questioned costs were identified. Recommendation We recommend that management implement a formal policy requiring all financial reports to undergo an independent review prior to submission. This process should include a documented review checklist and sign-off by a qualified individual who is independent of the report preparation process. Management’s Response Management agrees with the finding and will implement procedures to ensure independent reviews of financial reports are conducted before submission. The Organization will designate a responsible reviewer and implement a review checklist immediately.
Finding 2024-002
Assistance listing number(s): 17.258, 17.259, and 17.278 Federal Program Name or Cluster: WIOA Cluster Name of Federal Agency: United States Department of Labor Name of Pass-Through Entity: Minnesota DEED Compliance Requirement/Internal Control over Compliance: Reporting Criteria Organizations are required to maintain effective internal controls over financial reporting to ensure that financial statements and other reports are accurate, complete, and submitted in compliance with applicable regulations. An independent review process is a key internal control to detect and correct errors prior to submission. Condition/Context We noted that financial reports submitted during the year were not subject to an independent review process before submission. Cause The Organization has not implemented a formal policy or procedure requiring an independent review of financial reports prior to submission. Effect Failure to perform an independent review increases the risk of material misstatements in financial reports, noncompliance with reporting requirements, and reduced stakeholder confidence in the reliability of the Organization’s financial information. Questioned Costs No questioned costs were identified. Recommendation We recommend that management implement a formal policy requiring all financial reports to undergo an independent review prior to submission. This process should include a documented review checklist and sign-off by a qualified individual who is independent of the report preparation process. Management’s Response Management agrees with the finding and will implement procedures to ensure independent reviews of financial reports are conducted before submission. The Organization will designate a responsible reviewer and implement a review checklist immediately.
Finding 2024-002
Assistance listing number(s): 17.258, 17.259, and 17.278 Federal Program Name or Cluster: WIOA Cluster Name of Federal Agency: United States Department of Labor Name of Pass-Through Entity: Minnesota DEED Compliance Requirement/Internal Control over Compliance: Reporting Criteria Organizations are required to maintain effective internal controls over financial reporting to ensure that financial statements and other reports are accurate, complete, and submitted in compliance with applicable regulations. An independent review process is a key internal control to detect and correct errors prior to submission. Condition/Context We noted that financial reports submitted during the year were not subject to an independent review process before submission. Cause The Organization has not implemented a formal policy or procedure requiring an independent review of financial reports prior to submission. Effect Failure to perform an independent review increases the risk of material misstatements in financial reports, noncompliance with reporting requirements, and reduced stakeholder confidence in the reliability of the Organization’s financial information. Questioned Costs No questioned costs were identified. Recommendation We recommend that management implement a formal policy requiring all financial reports to undergo an independent review prior to submission. This process should include a documented review checklist and sign-off by a qualified individual who is independent of the report preparation process. Management’s Response Management agrees with the finding and will implement procedures to ensure independent reviews of financial reports are conducted before submission. The Organization will designate a responsible reviewer and implement a review checklist immediately.
Finding 2024-002
Assistance listing number(s): 17.258, 17.259, and 17.278 Federal Program Name or Cluster: WIOA Cluster Name of Federal Agency: United States Department of Labor Name of Pass-Through Entity: Minnesota DEED Compliance Requirement/Internal Control over Compliance: Reporting Criteria Organizations are required to maintain effective internal controls over financial reporting to ensure that financial statements and other reports are accurate, complete, and submitted in compliance with applicable regulations. An independent review process is a key internal control to detect and correct errors prior to submission. Condition/Context We noted that financial reports submitted during the year were not subject to an independent review process before submission. Cause The Organization has not implemented a formal policy or procedure requiring an independent review of financial reports prior to submission. Effect Failure to perform an independent review increases the risk of material misstatements in financial reports, noncompliance with reporting requirements, and reduced stakeholder confidence in the reliability of the Organization’s financial information. Questioned Costs No questioned costs were identified. Recommendation We recommend that management implement a formal policy requiring all financial reports to undergo an independent review prior to submission. This process should include a documented review checklist and sign-off by a qualified individual who is independent of the report preparation process. Management’s Response Management agrees with the finding and will implement procedures to ensure independent reviews of financial reports are conducted before submission. The Organization will designate a responsible reviewer and implement a review checklist immediately.
Finding 2024-002
Assistance listing number(s): 17.258, 17.259, and 17.278 Federal Program Name or Cluster: WIOA Cluster Name of Federal Agency: United States Department of Labor Name of Pass-Through Entity: Minnesota DEED Compliance Requirement/Internal Control over Compliance: Reporting Criteria Organizations are required to maintain effective internal controls over financial reporting to ensure that financial statements and other reports are accurate, complete, and submitted in compliance with applicable regulations. An independent review process is a key internal control to detect and correct errors prior to submission. Condition/Context We noted that financial reports submitted during the year were not subject to an independent review process before submission. Cause The Organization has not implemented a formal policy or procedure requiring an independent review of financial reports prior to submission. Effect Failure to perform an independent review increases the risk of material misstatements in financial reports, noncompliance with reporting requirements, and reduced stakeholder confidence in the reliability of the Organization’s financial information. Questioned Costs No questioned costs were identified. Recommendation We recommend that management implement a formal policy requiring all financial reports to undergo an independent review prior to submission. This process should include a documented review checklist and sign-off by a qualified individual who is independent of the report preparation process. Management’s Response Management agrees with the finding and will implement procedures to ensure independent reviews of financial reports are conducted before submission. The Organization will designate a responsible reviewer and implement a review checklist immediately.
Finding 2024-002
Assistance listing number(s): 17.258, 17.259, and 17.278 Federal Program Name or Cluster: WIOA Cluster Name of Federal Agency: United States Department of Labor Name of Pass-Through Entity: Minnesota DEED Compliance Requirement/Internal Control over Compliance: Reporting Criteria Organizations are required to maintain effective internal controls over financial reporting to ensure that financial statements and other reports are accurate, complete, and submitted in compliance with applicable regulations. An independent review process is a key internal control to detect and correct errors prior to submission. Condition/Context We noted that financial reports submitted during the year were not subject to an independent review process before submission. Cause The Organization has not implemented a formal policy or procedure requiring an independent review of financial reports prior to submission. Effect Failure to perform an independent review increases the risk of material misstatements in financial reports, noncompliance with reporting requirements, and reduced stakeholder confidence in the reliability of the Organization’s financial information. Questioned Costs No questioned costs were identified. Recommendation We recommend that management implement a formal policy requiring all financial reports to undergo an independent review prior to submission. This process should include a documented review checklist and sign-off by a qualified individual who is independent of the report preparation process. Management’s Response Management agrees with the finding and will implement procedures to ensure independent reviews of financial reports are conducted before submission. The Organization will designate a responsible reviewer and implement a review checklist immediately.
Finding 2024-002
Assistance listing number(s): 17.258, 17.259, and 17.278 Federal Program Name or Cluster: WIOA Cluster Name of Federal Agency: United States Department of Labor Name of Pass-Through Entity: Minnesota DEED Compliance Requirement/Internal Control over Compliance: Reporting Criteria Organizations are required to maintain effective internal controls over financial reporting to ensure that financial statements and other reports are accurate, complete, and submitted in compliance with applicable regulations. An independent review process is a key internal control to detect and correct errors prior to submission. Condition/Context We noted that financial reports submitted during the year were not subject to an independent review process before submission. Cause The Organization has not implemented a formal policy or procedure requiring an independent review of financial reports prior to submission. Effect Failure to perform an independent review increases the risk of material misstatements in financial reports, noncompliance with reporting requirements, and reduced stakeholder confidence in the reliability of the Organization’s financial information. Questioned Costs No questioned costs were identified. Recommendation We recommend that management implement a formal policy requiring all financial reports to undergo an independent review prior to submission. This process should include a documented review checklist and sign-off by a qualified individual who is independent of the report preparation process. Management’s Response Management agrees with the finding and will implement procedures to ensure independent reviews of financial reports are conducted before submission. The Organization will designate a responsible reviewer and implement a review checklist immediately.
Finding 2024-002
Assistance listing number(s): 17.258, 17.259, and 17.278 Federal Program Name or Cluster: WIOA Cluster Name of Federal Agency: United States Department of Labor Name of Pass-Through Entity: Minnesota DEED Compliance Requirement/Internal Control over Compliance: Reporting Criteria Organizations are required to maintain effective internal controls over financial reporting to ensure that financial statements and other reports are accurate, complete, and submitted in compliance with applicable regulations. An independent review process is a key internal control to detect and correct errors prior to submission. Condition/Context We noted that financial reports submitted during the year were not subject to an independent review process before submission. Cause The Organization has not implemented a formal policy or procedure requiring an independent review of financial reports prior to submission. Effect Failure to perform an independent review increases the risk of material misstatements in financial reports, noncompliance with reporting requirements, and reduced stakeholder confidence in the reliability of the Organization’s financial information. Questioned Costs No questioned costs were identified. Recommendation We recommend that management implement a formal policy requiring all financial reports to undergo an independent review prior to submission. This process should include a documented review checklist and sign-off by a qualified individual who is independent of the report preparation process. Management’s Response Management agrees with the finding and will implement procedures to ensure independent reviews of financial reports are conducted before submission. The Organization will designate a responsible reviewer and implement a review checklist immediately.