Audit 391239

Federal Agency: U.S. Department of Labor Federal Program Name: Workforce Investment Opportunity Act Cluster Assistance Listing Number: 17.258, 17.259, 17.278 Federal Award Identification Number and Year: 23A55AY000017 – 2023 24A55AY000071 – 2024 AA-34801-20-55-A-53 – 2022 7624-07-11 – 2024 Pass-Through Agency: State of Washington - Employment Security Department Pass-Through Number(s): K8001, K8385, K7497, K8488 Award Period: K8001 – April 01, 2023 – June 30, 2025 K8385 – July 01, 2024 – June 30, 2026 K7497 – April 01, 2022 – March 31, 2025 K8488 – July 01, 2024 – September 30, 2025Type of Finding: • Material Weakness in Internal Control over Compliance – Reporting Criteria or specific requirement: Management is responsible for developing and maintaining internal controls over reporting that include the independent review and approval of grant reports submitted to the granting agency. Condition: During audit procedures, we noted that required reports were prepared by the Fiscal Director and reviewed and approved by the Program Director. During the year under audit, the review and approval of required reports was reassigned to the Staff Accountant. Questioned costs: None. Context: For three of the five reports tested, evidence of review and approval consisted solely of initials. The auditor was unable to confirm that the initials represented the staff accountant. Additionally, the staff accountant lacked knowledge of the program and grant requirements necessary to perform effective review and approval. Cause: Lack of independent review and approval of reports by a supervisory individual knowledgeable of the program and grant requirements. Effect: Lack of proper review and approval could result in incorrect information being submitted on required reports. Repeat Finding: Not a repeat finding. Recommendation: We recommend that all grant reports are reviewed and approved by an individual knowledgeable of the program and the reporting requirements. It is recommended that this individual is not a subordinate of the individual preparing the reports. The review and approval should be formally documented and retained. Views of responsible officials: There is no disagreement with the audit finding.