Audit 35926

2022-001 Department of the Treasury, Passed through Utah Department of Workforce Services Federal Assistance Listing 21.027 Coronavirus State and Local Fiscal Recovery Funds Reporting Material Weakness in Internal Control over Compliance and Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization?s internal controls over reporting did not include documentation of a review of quarterly reports submitted to the awarding agency, which resulted in one error in the reported amount of the budget remaining on the grant project. In addition, one quarterly report was submitted after the deadline and without an approved extension. Cause: The Organization did not have internal controls in place to document review of the quarterly reports, including review of the amounts reported. Effect: The risk is increased that reported amounts could be misstated. Questioned Costs: None reported. Context/Sampling: Sampling was not used. All quarterly reports were selected. Repeat Finding from Prior Year(s): No. Recommendation: We recommend the Organization implement additional internal controls over review, approval, and monitoring of reporting requirements under federal awards. Views of Responsible Officials: Management agrees with this finding.

2022-002 Department of the Treasury, Passed through Utah Department of Workforce Services Federal Assistance Listing 21.027 Coronavirus State and Local Fiscal Recovery Funds Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance and Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization?s written procurement policies did not include all of the elements required by the Code of Federal Regulations 2 CFR 200.318-200.325, including monitoring that contractors are not suspended, debarred, or otherwise excluded pursuant to 31 CFR 19.300 and retaining documentation thereof. In addition, two construction contracts did not include all of the provisions required by Appendix II of 2 CFR Part 200. Cause: The Organization did not have internal controls in place to document procurement policies, to document monitoring contractors for suspension and debarment, or to ensure contracts with contractors included the required elements. Effect: The risk is increased that a procurement noncompliance could occur. Questioned Costs: None reported. Context/Sampling: Nonstatistical sampling was used. Sample size was 4 of 10 procurement transactions above the micro-purchase threshold and included $551,791 of federal awards. Repeat Finding from Prior Year(s): No. Recommendation: We recommend the Organization implement additional internal controls over procurement policies and procedures. Views of Responsible Officials: Management agrees with this finding.

2022-001 Department of the Treasury, Passed through Utah Department of Workforce Services Federal Assistance Listing 21.027 Coronavirus State and Local Fiscal Recovery Funds Reporting Material Weakness in Internal Control over Compliance and Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization?s internal controls over reporting did not include documentation of a review of quarterly reports submitted to the awarding agency, which resulted in one error in the reported amount of the budget remaining on the grant project. In addition, one quarterly report was submitted after the deadline and without an approved extension. Cause: The Organization did not have internal controls in place to document review of the quarterly reports, including review of the amounts reported. Effect: The risk is increased that reported amounts could be misstated. Questioned Costs: None reported. Context/Sampling: Sampling was not used. All quarterly reports were selected. Repeat Finding from Prior Year(s): No. Recommendation: We recommend the Organization implement additional internal controls over review, approval, and monitoring of reporting requirements under federal awards. Views of Responsible Officials: Management agrees with this finding.

2022-002 Department of the Treasury, Passed through Utah Department of Workforce Services Federal Assistance Listing 21.027 Coronavirus State and Local Fiscal Recovery Funds Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance and Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization?s written procurement policies did not include all of the elements required by the Code of Federal Regulations 2 CFR 200.318-200.325, including monitoring that contractors are not suspended, debarred, or otherwise excluded pursuant to 31 CFR 19.300 and retaining documentation thereof. In addition, two construction contracts did not include all of the provisions required by Appendix II of 2 CFR Part 200. Cause: The Organization did not have internal controls in place to document procurement policies, to document monitoring contractors for suspension and debarment, or to ensure contracts with contractors included the required elements. Effect: The risk is increased that a procurement noncompliance could occur. Questioned Costs: None reported. Context/Sampling: Nonstatistical sampling was used. Sample size was 4 of 10 procurement transactions above the micro-purchase threshold and included $551,791 of federal awards. Repeat Finding from Prior Year(s): No. Recommendation: We recommend the Organization implement additional internal controls over procurement policies and procedures. Views of Responsible Officials: Management agrees with this finding.