Audit 365197

ALN 10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program United States Department of Agriculture Passed through the Louisiana Department of Children and Family Services 2023 Funding Criteria: Per 2 CFR 200.303(a), entities should “establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.” Condition: Documentation for personnel employment contracts (payroll) was not maintained resulting in a systemic issue. Cause: The Organization has not designed and implemented policies and procedures to ensure documentation of employment contracts was properly maintained to support federal award expenditures. Effect: The Organization could use federal funds to pay expenditures that are not allowable activities or costs. Recommendation: We recommend management design and implement policies and procedures to ensure appropriate support is maintained for expenditures of federal funds. Management Response: See corrective action plan on page 31.

ALN 10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program United States Department of Agriculture Passed through the Louisiana Department of Children and Family Services 2023 Funding ALN 21.027 Coronavirus State and Local Fiscal Recovery Services United States Department of Treasury Passed through the City of New Orleans Office of Workforce Development 2023 Funding Criteria: Per 2 CFR 200.303(a), entities should “establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.” Also, 2 CFR 180, Subpart C prohibits non-Federal entities from entering into covered transactions with entities or persons that have been excluded or disqualified from participating in Federal contracting. Condition: Vendors paid with federal funds were not reviewed for suspension or debarment prior to payment resulting in a systemic issue as no control was implemented. Cause: The Organization has not designed or implemented a control to detect whether its vendors paid under federal awards are suspended or debarred. Effect: The Organization could use federal funds to pay expenditures for suspended or debarred entities. Recommendation: We recommend management design and implement controls to review vendors for suspension and debarment prior to payment using federal funds. Management Response: See corrective action plan on page 31.

ALN 10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program United States Department of Agriculture Passed through the Louisiana Department of Children and Family Services 2023 Funding ALN 21.027 Coronavirus State and Local Fiscal Recovery Services United States Department of Treasury Passed through the City of New Orleans Office of Workforce Development 2023 Funding Criteria: Per 2 CFR 200.303(a), entities should “establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.” Also, 2 CFR 180, Subpart C prohibits non-Federal entities from entering into covered transactions with entities or persons that have been excluded or disqualified from participating in Federal contracting. Condition: Vendors paid with federal funds were not reviewed for suspension or debarment prior to payment resulting in a systemic issue as no control was implemented. Cause: The Organization has not designed or implemented a control to detect whether its vendors paid under federal awards are suspended or debarred. Effect: The Organization could use federal funds to pay expenditures for suspended or debarred entities. Recommendation: We recommend management design and implement controls to review vendors for suspension and debarment prior to payment using federal funds. Management Response: See corrective action plan on page 31.

ALN 10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program United States Department of Agriculture Passed through the Louisiana Department of Children and Family Services 2023 Funding Criteria: Per 2 CFR 200.303(a), entities should “establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.” Condition: Documentation for personnel employment contracts (payroll) was not maintained resulting in a systemic issue. Cause: The Organization has not designed and implemented policies and procedures to ensure documentation of employment contracts was properly maintained to support federal award expenditures. Effect: The Organization could use federal funds to pay expenditures that are not allowable activities or costs. Recommendation: We recommend management design and implement policies and procedures to ensure appropriate support is maintained for expenditures of federal funds. Management Response: See corrective action plan on page 31.

ALN 10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program United States Department of Agriculture Passed through the Louisiana Department of Children and Family Services 2023 Funding ALN 21.027 Coronavirus State and Local Fiscal Recovery Services United States Department of Treasury Passed through the City of New Orleans Office of Workforce Development 2023 Funding Criteria: Per 2 CFR 200.303(a), entities should “establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.” Also, 2 CFR 180, Subpart C prohibits non-Federal entities from entering into covered transactions with entities or persons that have been excluded or disqualified from participating in Federal contracting. Condition: Vendors paid with federal funds were not reviewed for suspension or debarment prior to payment resulting in a systemic issue as no control was implemented. Cause: The Organization has not designed or implemented a control to detect whether its vendors paid under federal awards are suspended or debarred. Effect: The Organization could use federal funds to pay expenditures for suspended or debarred entities. Recommendation: We recommend management design and implement controls to review vendors for suspension and debarment prior to payment using federal funds. Management Response: See corrective action plan on page 31.

ALN 10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program United States Department of Agriculture Passed through the Louisiana Department of Children and Family Services 2023 Funding ALN 21.027 Coronavirus State and Local Fiscal Recovery Services United States Department of Treasury Passed through the City of New Orleans Office of Workforce Development 2023 Funding Criteria: Per 2 CFR 200.303(a), entities should “establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.” Also, 2 CFR 180, Subpart C prohibits non-Federal entities from entering into covered transactions with entities or persons that have been excluded or disqualified from participating in Federal contracting. Condition: Vendors paid with federal funds were not reviewed for suspension or debarment prior to payment resulting in a systemic issue as no control was implemented. Cause: The Organization has not designed or implemented a control to detect whether its vendors paid under federal awards are suspended or debarred. Effect: The Organization could use federal funds to pay expenditures for suspended or debarred entities. Recommendation: We recommend management design and implement controls to review vendors for suspension and debarment prior to payment using federal funds. Management Response: See corrective action plan on page 31.