Audit 402596

2025-002: Significant Deficiency in Internal Control / Immaterial Noncompliance – Reporting Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278) and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Policy Issuances for the WIOA Cluster and the Temporary Assistance for Needy Families Cluster state that all quarterly financial expenditure reports are due to Workforce Development no later than the 20th calendar day after the end of the calendar quarter. The final close-out report is due to Workforce Development no later than 60 days after the end of the grant period. Condition: Quarterly reports selected for testing for WIOA Cluster and Temporary Assistance for Needy Families Cluster were submitted after the deadline. Cause: Management oversight. Effect: Reports were not filed in a timely manner. Recommendation: The Consortium should review policies and procedures to ensure that all quarterly and close out reports are filed in a timely manner. Views of Responsible Officials: We agree with the finding.

2025-001: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs Federal Program: Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allowable costs charged to the grant were coded to an incorrect functional expense within the grant. Context: Cost for participant benefit expense was charged to a subcontractor expense account. Cause: Management oversight. Effect: Costs charged to the program may be considered unallowable if not properly identified within the general ledger. Recommendation: The Consortium should review policies and procedures to ensure that all grant costs are charged to the correct expense accounts. Views of Responsible Officials: We agree with the finding.