Audit 369257

Finding 2024-002 – Earmarking Federal Program Information: • Workforce Innovation and Opportunity Act (WIOA) – A.L.N.# 17.258/259/278 Criteria: • 2 CFR 200.302(b)(3): Recipients must maintain records that adequately identify the source and application of Federal funds. • 2 CFR 200.327–328: Financial and performance reports must be accurate, current, and complete. • OMB Compliance Supplement (Part 4, earmarking section): Requires that a specified portion of expenditures be used for certain categories, which must be verifiable through the accounting system. Condition: During our testing of earmarking requirements for the WIOA, we were unable to perform the required calculations because the financial data reported to the awarding agency did not reconcile to the County’s underlying accounting records. Due to these identified discrepancies, we were unable to verify earmarking requirements. Context: We selected twelve monthly reports for the WIOA program, and we noted for the reports selected, amounts reported did not agree to the underlying accounting records and thus we could not verify compliance with earmarking requirements. Cause: The County has not implemented effective reconciliation procedures to ensure that reports submitted to the awarding agency agree to the underlying accounting records. Additionally, there is no validation of the accuracy of expenditures reported for earmarking purposes. Effect: Because the submitted reports did not reconcile to the accounting records, we were unable to determine whether the County complied with the earmarking requirements of the program. Questioned Costs: None. Recommendation: We recommend the County identify all eligible expenses and revisions prior to reporting submissions so that accurate information is available to ensure compliance with earmarking requirements.

Finding 2024-001 – Reporting Federal Program Information: • COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) – A.L.N.# 21.027 • Workforce Innovation and Opportunity Act (WIOA) – A.L.N.# 17.258/259/278 • Temporary Assistance for Needy Families (TANF) – A.L.N.# 93.558 Criteria: 2 CFR 200.327 and 200.328 require that performance and financial reports be accurate, current, and complete. Reports must be supported by the accounting records from which they are prepared. Condition: We noted that quarterly financial reports for SLFRF and the monthly financial reports for WIOA and TANF submitted during FY 2024 did not reconcile to the County’s underlying accounting records. Context: We selected four quarterly reports for the SLFRF program, twelve monthly reports for the WIOA program, and twelve monthly reports for the TANF program, and we noted for the reports selected, amounts reported did not agree to the supporting documentation. Cause: The County identified additional grant expenses or disqualified certain grant expenses and revised existing expenses charged to the grants after the reports were submitted, but the reports had already been filed and could not be amended. Effect: Submitting reports that do not agree to the accounting records may result in inaccurate reporting to the federal awarding agency. This increases the risk of misstating program expenditures, potential questioned costs, and reduced confidence in the accuracy of reported data used for program oversight. Questioned Costs: None. Recommendation: We recommend the County identify all eligible expenses and revisions prior to reporting submissions.