FAC Explorer

Audit 347450

FY End
2024-06-30
Total Expended
$8.46M
Findings
6
Programs
7
Organization: Central Pennsylvania Workforce Development Corporation (PA)
Year: 2024 Accepted: 2025-03-24
Auditor: Young Oakes Brown & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
529434 2024-001 - - B
529435 2024-001 - - B
529436 2024-001 - - B
1105876 2024-001 - - B
1105877 2024-001 - - B
1105878 2024-001 - - B

Programs

ALN Program Spent Major Findings
17.278 Wioa Dislocated Worker Formula Grants $1.99M Yes 1
17.259 Wioa Youth Activities $1.87M Yes 1
93.558 Temporary Assistance for Needy Families $1.86M - 0
17.258 Wioa Adult Program $1.73M Yes 1
23.002 Appalachian Area Development $170,216 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $25,947 - 0
17.285 Registered Apprenticeship $21,895 - 0

Contacts

Name Title Type
GKMHJG17VG78 Erica Mulberger Auditee
5705686868 Daniel W. Bradley, CPA Auditor
No contacts on file

Notes to SEFA

Title: Note 2 Accounting Policies: The Schedule of Expenditures of Federal Awards has been prepared on the accrual basis of accounting. Revenues were adjusted to balance the expenditures incurred for each project. De Minimis Rate Used: N Rate Explanation: The Corporation did not elect to use the de-minimis 10% indirect cost rate. Extensive compliance tests, as required by the Uniform Guidance, were performed on the WIOA Cluster, which, when combined, represents 66% of the total expenditures reflected on the Schedule of Expenditures of Federal Awards. The WIOA Cluster exceeds $1,691,499 and, therefore, represent the program to which the specific compliance requirements must be applied.
Title: Note 3 Accounting Policies: The Schedule of Expenditures of Federal Awards has been prepared on the accrual basis of accounting. Revenues were adjusted to balance the expenditures incurred for each project. De Minimis Rate Used: N Rate Explanation: The Corporation did not elect to use the de-minimis 10% indirect cost rate. The Temporary Assistance for Needy Families' deferred revenue amounts include payments received from the performance based portion of the related contract. The Department of Human Services has not yet defined the life of these performance funds but has restricted their use for the Temporary Assistance for Needy Families. During the current year, $25,860 was charged against the Temporary Assistance for Needy Families from the performance based portion of the related contracts.

Finding Details

Finding 2024-001
U.S. DEPARTMENT OF LABOR 2024-001 WIOA Cluster: WIOA Youth Activities 17.259, WIOA Adult Program 17.258 and WIOA Dislocated Formula Grants 17.278. Statement of Condition: The allocation of indirect costs related to the federal programs between program costs and administration costs was not correct. Criteria: The Organization did not allocate allowable indirect costs to the federal programs in accordance with the expense allocation utilized by the organization. Cause: The spreadsheet used to determine the percent of indirect costs charged to program costs and administration costs contained a formula error. Effect: The percentages used to determine the amount of indirect costs to charge to program costs and administration costs were not correct. Program costs were overreported and administration costs were underreported. Context: For the three months selected for testing, a total of $8,408 was charged to program costs instead of administration costs. Based on review of the Financial Status Reports (FSR) submitted to the Pennsylvania Department of Labor and Industry, the Organization would still be in compliance with the Earmarking requirement that no more than 10% of WIOA funds be charged for administration costs. Recommendation: We recommend the organization ensures the spreadsheet used to allocate the indirect costs between program and administration is accurate. View of Responsible Officials: The formula used to calculate the allocation of indrect costs charged to program costs and administration costs has been corrected. Corrective Action Taken: The formula in question has been corrected. Further, in order to prevent any issues happening again, key cells in the document have been locked (password protected) and TRUE/FALSE checks have been added. These TRUE/FALSE checks will serve as an additional method to ensure that the formulas are pulling correctly and with conditional formatting to serve as a color warning when something is wrong. If the formula is working correctly, the TRUE checks will show; if the formula is not working correctly, the check will show FALSE in bright red, indicating that there is a problem. The check fields will also be protected so they cannot be inadvertently changed.
Finding 2024-001
U.S. DEPARTMENT OF LABOR 2024-001 WIOA Cluster: WIOA Youth Activities 17.259, WIOA Adult Program 17.258 and WIOA Dislocated Formula Grants 17.278. Statement of Condition: The allocation of indirect costs related to the federal programs between program costs and administration costs was not correct. Criteria: The Organization did not allocate allowable indirect costs to the federal programs in accordance with the expense allocation utilized by the organization. Cause: The spreadsheet used to determine the percent of indirect costs charged to program costs and administration costs contained a formula error. Effect: The percentages used to determine the amount of indirect costs to charge to program costs and administration costs were not correct. Program costs were overreported and administration costs were underreported. Context: For the three months selected for testing, a total of $8,408 was charged to program costs instead of administration costs. Based on review of the Financial Status Reports (FSR) submitted to the Pennsylvania Department of Labor and Industry, the Organization would still be in compliance with the Earmarking requirement that no more than 10% of WIOA funds be charged for administration costs. Recommendation: We recommend the organization ensures the spreadsheet used to allocate the indirect costs between program and administration is accurate. View of Responsible Officials: The formula used to calculate the allocation of indrect costs charged to program costs and administration costs has been corrected. Corrective Action Taken: The formula in question has been corrected. Further, in order to prevent any issues happening again, key cells in the document have been locked (password protected) and TRUE/FALSE checks have been added. These TRUE/FALSE checks will serve as an additional method to ensure that the formulas are pulling correctly and with conditional formatting to serve as a color warning when something is wrong. If the formula is working correctly, the TRUE checks will show; if the formula is not working correctly, the check will show FALSE in bright red, indicating that there is a problem. The check fields will also be protected so they cannot be inadvertently changed.
Finding 2024-001
U.S. DEPARTMENT OF LABOR 2024-001 WIOA Cluster: WIOA Youth Activities 17.259, WIOA Adult Program 17.258 and WIOA Dislocated Formula Grants 17.278. Statement of Condition: The allocation of indirect costs related to the federal programs between program costs and administration costs was not correct. Criteria: The Organization did not allocate allowable indirect costs to the federal programs in accordance with the expense allocation utilized by the organization. Cause: The spreadsheet used to determine the percent of indirect costs charged to program costs and administration costs contained a formula error. Effect: The percentages used to determine the amount of indirect costs to charge to program costs and administration costs were not correct. Program costs were overreported and administration costs were underreported. Context: For the three months selected for testing, a total of $8,408 was charged to program costs instead of administration costs. Based on review of the Financial Status Reports (FSR) submitted to the Pennsylvania Department of Labor and Industry, the Organization would still be in compliance with the Earmarking requirement that no more than 10% of WIOA funds be charged for administration costs. Recommendation: We recommend the organization ensures the spreadsheet used to allocate the indirect costs between program and administration is accurate. View of Responsible Officials: The formula used to calculate the allocation of indrect costs charged to program costs and administration costs has been corrected. Corrective Action Taken: The formula in question has been corrected. Further, in order to prevent any issues happening again, key cells in the document have been locked (password protected) and TRUE/FALSE checks have been added. These TRUE/FALSE checks will serve as an additional method to ensure that the formulas are pulling correctly and with conditional formatting to serve as a color warning when something is wrong. If the formula is working correctly, the TRUE checks will show; if the formula is not working correctly, the check will show FALSE in bright red, indicating that there is a problem. The check fields will also be protected so they cannot be inadvertently changed.
Finding 2024-001
U.S. DEPARTMENT OF LABOR 2024-001 WIOA Cluster: WIOA Youth Activities 17.259, WIOA Adult Program 17.258 and WIOA Dislocated Formula Grants 17.278. Statement of Condition: The allocation of indirect costs related to the federal programs between program costs and administration costs was not correct. Criteria: The Organization did not allocate allowable indirect costs to the federal programs in accordance with the expense allocation utilized by the organization. Cause: The spreadsheet used to determine the percent of indirect costs charged to program costs and administration costs contained a formula error. Effect: The percentages used to determine the amount of indirect costs to charge to program costs and administration costs were not correct. Program costs were overreported and administration costs were underreported. Context: For the three months selected for testing, a total of $8,408 was charged to program costs instead of administration costs. Based on review of the Financial Status Reports (FSR) submitted to the Pennsylvania Department of Labor and Industry, the Organization would still be in compliance with the Earmarking requirement that no more than 10% of WIOA funds be charged for administration costs. Recommendation: We recommend the organization ensures the spreadsheet used to allocate the indirect costs between program and administration is accurate. View of Responsible Officials: The formula used to calculate the allocation of indrect costs charged to program costs and administration costs has been corrected. Corrective Action Taken: The formula in question has been corrected. Further, in order to prevent any issues happening again, key cells in the document have been locked (password protected) and TRUE/FALSE checks have been added. These TRUE/FALSE checks will serve as an additional method to ensure that the formulas are pulling correctly and with conditional formatting to serve as a color warning when something is wrong. If the formula is working correctly, the TRUE checks will show; if the formula is not working correctly, the check will show FALSE in bright red, indicating that there is a problem. The check fields will also be protected so they cannot be inadvertently changed.
Finding 2024-001
U.S. DEPARTMENT OF LABOR 2024-001 WIOA Cluster: WIOA Youth Activities 17.259, WIOA Adult Program 17.258 and WIOA Dislocated Formula Grants 17.278. Statement of Condition: The allocation of indirect costs related to the federal programs between program costs and administration costs was not correct. Criteria: The Organization did not allocate allowable indirect costs to the federal programs in accordance with the expense allocation utilized by the organization. Cause: The spreadsheet used to determine the percent of indirect costs charged to program costs and administration costs contained a formula error. Effect: The percentages used to determine the amount of indirect costs to charge to program costs and administration costs were not correct. Program costs were overreported and administration costs were underreported. Context: For the three months selected for testing, a total of $8,408 was charged to program costs instead of administration costs. Based on review of the Financial Status Reports (FSR) submitted to the Pennsylvania Department of Labor and Industry, the Organization would still be in compliance with the Earmarking requirement that no more than 10% of WIOA funds be charged for administration costs. Recommendation: We recommend the organization ensures the spreadsheet used to allocate the indirect costs between program and administration is accurate. View of Responsible Officials: The formula used to calculate the allocation of indrect costs charged to program costs and administration costs has been corrected. Corrective Action Taken: The formula in question has been corrected. Further, in order to prevent any issues happening again, key cells in the document have been locked (password protected) and TRUE/FALSE checks have been added. These TRUE/FALSE checks will serve as an additional method to ensure that the formulas are pulling correctly and with conditional formatting to serve as a color warning when something is wrong. If the formula is working correctly, the TRUE checks will show; if the formula is not working correctly, the check will show FALSE in bright red, indicating that there is a problem. The check fields will also be protected so they cannot be inadvertently changed.
Finding 2024-001
U.S. DEPARTMENT OF LABOR 2024-001 WIOA Cluster: WIOA Youth Activities 17.259, WIOA Adult Program 17.258 and WIOA Dislocated Formula Grants 17.278. Statement of Condition: The allocation of indirect costs related to the federal programs between program costs and administration costs was not correct. Criteria: The Organization did not allocate allowable indirect costs to the federal programs in accordance with the expense allocation utilized by the organization. Cause: The spreadsheet used to determine the percent of indirect costs charged to program costs and administration costs contained a formula error. Effect: The percentages used to determine the amount of indirect costs to charge to program costs and administration costs were not correct. Program costs were overreported and administration costs were underreported. Context: For the three months selected for testing, a total of $8,408 was charged to program costs instead of administration costs. Based on review of the Financial Status Reports (FSR) submitted to the Pennsylvania Department of Labor and Industry, the Organization would still be in compliance with the Earmarking requirement that no more than 10% of WIOA funds be charged for administration costs. Recommendation: We recommend the organization ensures the spreadsheet used to allocate the indirect costs between program and administration is accurate. View of Responsible Officials: The formula used to calculate the allocation of indrect costs charged to program costs and administration costs has been corrected. Corrective Action Taken: The formula in question has been corrected. Further, in order to prevent any issues happening again, key cells in the document have been locked (password protected) and TRUE/FALSE checks have been added. These TRUE/FALSE checks will serve as an additional method to ensure that the formulas are pulling correctly and with conditional formatting to serve as a color warning when something is wrong. If the formula is working correctly, the TRUE checks will show; if the formula is not working correctly, the check will show FALSE in bright red, indicating that there is a problem. The check fields will also be protected so they cannot be inadvertently changed.