FAC Explorer

Audit 358729

FY End
2024-06-30
Total Expended
$1.97M
Findings
6
Programs
1
Organization: National Indian Youth Council, Inc. (NM)
Year: 2024 Accepted: 2025-06-12
Auditor: Jaramillo Accounting Group LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
564597 2024-001 Significant Deficiency Yes P
564598 2024-002 Significant Deficiency - E
564599 2024-003 Significant Deficiency - B
1141039 2024-001 Significant Deficiency Yes P
1141040 2024-002 Significant Deficiency - E
1141041 2024-003 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
17.265 Native American Employment and Training $1.97M Yes 3

Contacts

Name Title Type
N3N8W6JSCLN5 Serenia Thompson Auditee
5052472251 Scott Eliason Auditor
No contacts on file

Notes to SEFA

Accounting Policies: 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 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 the prior years. De Minimis Rate Used: N Rate Explanation: The Council has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2024-001
2024-001 ( 2023-002) LATE FILING OF THE SINGLE AUDIT REPORTING PACKAGE WITH THE FEDERAL AUDIT CLEARINGHOUSE - REPEATED Federal Agency: U.S. Department of Labor Federal Program and Assistance Listing Number: WIOA Cluster 17.265 Native American Employment and Training Type of Finding: Significant Deficiency, Non-compliance Compliance Area: Reporting Award Period: FY24 Questioned Cost: None Condition: NIYC did not submit their Single Audit reporting package (financial statements, data collection form,and corrective action plan) within the required time period. Criteria: 2 CFR 200.512 stipulates the requirement that the Single Audit reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Effect: Late reporting could cause additional oversight or restriction by the U.S. Department of Labor. Cause: Due to turnover, internal controls were not properly designed, executed, and monitored to ensure a timely preparation of reports and records for audit purposes. As a result, management did not comply with the submission requirements of 2 CFR 200.512.
Finding 2024-002
2024-002 INSUFFICIENT WIOA ELIGIBILITY DOCUMENTATION Federal Agency: U.S. Department of Labor Federal Program and Assistance Listing Number: 17.265 Type of Finding: Significant Deficiency, Non-compliance Compliance Area: Eligibility Award Period: National Employment and Training (07/01/2022-06/30/2025) National Employment and Training (06/01/2023-06/30/2026) Questioned Costs: None Condition: 1 out of 40 sampled applications lacked sufficient documentation to support eligibility under WIOA Section 166. Specifically, the file was missing verification of tribal affiliation, proof of residency, and documentation of public assistance status. Criteria: Per 2 CFR §200.303 and §200.430, recipients of federal funds must establish and maintain effective internal controls to ensure compliance with federal statutes, regulations, and the terms and conditions of the award. The NIYC-WIOA Policy Manual requires that eligibility determinations be supported by verifiable documentation, including tribal enrollment records, residency verification, and evidence of low-income or public assistance status. Effect: Failure to maintain complete eligibility documentation may result in noncompliance with federal program requirements, potential disallowed costs, and increased risk of audit findings or funding claw backs. Cause: The missing documentation was attributed to a participant file being misplaced during a staff transition, indicating a lack of centralized and secure file management protocols.
Finding 2024-003
2024-003 INSUFFICIENT PAYROLL AUTHORIZATION AND TIMESHEET CONTROLS Federal Agency: U.S. Department of Labor Federal Program and Assistance Listing Number: 17.265 Type of Finding: Significant Deficiency, Non-compliance Compliance Area: Allowable Costs (Payroll) Award Period: National Employment and Training (07/01/2022-06/30/2025) National Employment and Training (06/01/2023-06/30/2026) Questioned Costs: None Condition: Our testing of payroll disbursements identified the following exceptions: -One (1) out of 45 payroll transactions lacked supporting documentation for an approved pay rate change. -One (1) out of 45 payroll transactions resulted in an overpayment for 52 hours instead of the authorized 20 hours. Criteria: Per 2 CFR §200.430 and NIYC's Fiscal Manual, all payroll transactions must be supported by appropriate documentation, including approved personnel action forms for rate changes and verified timesheets. Payroll must be reviewed and approved by designated personnel prior to processing. Effect: These deficiencies increase the risk of financial loss, inaccurate payroll reporting, and noncompliance with federal cost principles. They also undermine the reliability of internal controls over payroll processing. Cause: The overpayment was due to a clerical error in the Work Experience (WEX) timesheet process. The missing pay rate documentation was not retained during a period of organizational restructuring.
Finding 2024-001
2024-001 ( 2023-002) LATE FILING OF THE SINGLE AUDIT REPORTING PACKAGE WITH THE FEDERAL AUDIT CLEARINGHOUSE - REPEATED Federal Agency: U.S. Department of Labor Federal Program and Assistance Listing Number: WIOA Cluster 17.265 Native American Employment and Training Type of Finding: Significant Deficiency, Non-compliance Compliance Area: Reporting Award Period: FY24 Questioned Cost: None Condition: NIYC did not submit their Single Audit reporting package (financial statements, data collection form,and corrective action plan) within the required time period. Criteria: 2 CFR 200.512 stipulates the requirement that the Single Audit reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Effect: Late reporting could cause additional oversight or restriction by the U.S. Department of Labor. Cause: Due to turnover, internal controls were not properly designed, executed, and monitored to ensure a timely preparation of reports and records for audit purposes. As a result, management did not comply with the submission requirements of 2 CFR 200.512.
Finding 2024-002
2024-002 INSUFFICIENT WIOA ELIGIBILITY DOCUMENTATION Federal Agency: U.S. Department of Labor Federal Program and Assistance Listing Number: 17.265 Type of Finding: Significant Deficiency, Non-compliance Compliance Area: Eligibility Award Period: National Employment and Training (07/01/2022-06/30/2025) National Employment and Training (06/01/2023-06/30/2026) Questioned Costs: None Condition: 1 out of 40 sampled applications lacked sufficient documentation to support eligibility under WIOA Section 166. Specifically, the file was missing verification of tribal affiliation, proof of residency, and documentation of public assistance status. Criteria: Per 2 CFR §200.303 and §200.430, recipients of federal funds must establish and maintain effective internal controls to ensure compliance with federal statutes, regulations, and the terms and conditions of the award. The NIYC-WIOA Policy Manual requires that eligibility determinations be supported by verifiable documentation, including tribal enrollment records, residency verification, and evidence of low-income or public assistance status. Effect: Failure to maintain complete eligibility documentation may result in noncompliance with federal program requirements, potential disallowed costs, and increased risk of audit findings or funding claw backs. Cause: The missing documentation was attributed to a participant file being misplaced during a staff transition, indicating a lack of centralized and secure file management protocols.
Finding 2024-003
2024-003 INSUFFICIENT PAYROLL AUTHORIZATION AND TIMESHEET CONTROLS Federal Agency: U.S. Department of Labor Federal Program and Assistance Listing Number: 17.265 Type of Finding: Significant Deficiency, Non-compliance Compliance Area: Allowable Costs (Payroll) Award Period: National Employment and Training (07/01/2022-06/30/2025) National Employment and Training (06/01/2023-06/30/2026) Questioned Costs: None Condition: Our testing of payroll disbursements identified the following exceptions: -One (1) out of 45 payroll transactions lacked supporting documentation for an approved pay rate change. -One (1) out of 45 payroll transactions resulted in an overpayment for 52 hours instead of the authorized 20 hours. Criteria: Per 2 CFR §200.430 and NIYC's Fiscal Manual, all payroll transactions must be supported by appropriate documentation, including approved personnel action forms for rate changes and verified timesheets. Payroll must be reviewed and approved by designated personnel prior to processing. Effect: These deficiencies increase the risk of financial loss, inaccurate payroll reporting, and noncompliance with federal cost principles. They also undermine the reliability of internal controls over payroll processing. Cause: The overpayment was due to a clerical error in the Work Experience (WEX) timesheet process. The missing pay rate documentation was not retained during a period of organizational restructuring.