FAC Explorer

Audit 56875

FY End
2022-06-30
Total Expended
$1.16M
Findings
8
Programs
4
Organization: Central Virginia Partnership for Economic Development (VA)
Year: 2022 Accepted: 2023-03-21
Auditor: Hantzmon Wiebel LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
61616 2022-002 Significant Deficiency Yes A
61617 2022-002 Significant Deficiency Yes A
61618 2022-002 Significant Deficiency Yes A
61619 2022-002 Significant Deficiency Yes A
638058 2022-002 Significant Deficiency Yes A
638059 2022-002 Significant Deficiency Yes A
638060 2022-002 Significant Deficiency Yes A
638061 2022-002 Significant Deficiency Yes A

Programs

ALN Program Spent Major Findings
17.258 Wia Adult Program $560,004 Yes 1
17.259 Wia Youth Activities $338,177 Yes 1
17.278 Wia Dislocated Worker Formula Grants $230,969 Yes 1
17.277 Workforce Investment Act (wia) National Emergency Grants $31,367 Yes 1

Contacts

Name Title Type
RNM9AFK8FJJ3 Helen Cauthen Auditee
4349795610 P. Frank Berry Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of CENTRAL VIRGINIA PARTNERSHIP FOR ECONOMIC DEVELOPMENT for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.

Finding Details

Finding 2022-002
CRITERIA: The Organization is required to implement internal controls over financial reporting to ensure compliance with federal program requirements and to ensure these controls are operating as designed. CONDITION: The Organization does not have adequate segregation of duties for financial reporting purposes. CONTEXT: During dual purpose tests of controls and compliance over direct disbursements, we noted that there is no review and approval process of expense allocations, such as payroll and overhead. While a detailed review process exists for expense allocations made by subrecipients, no such review process exists for the Organization?s own expense allocations. EFFECT: This circumstance increases the opportunity for errors and misstatements to go undetected. CAUSE: This situation is created by limits on staffing and by insufficient resources to retain the number of staff necessary to obtain the optimum level of segregation and oversight. RECOMMENDATION: We recommend that management continue to look for opportunities to improve segregation among staff involved with financial reporting, and to implement processes to ensure that expense allocations are verified for accuracy. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding. REPEAT FINDING: This finding was reported in the Schedule of Findings and Questioned Costs for the year ended June 30, 2021 as item 2021-02.
Finding 2022-002
CRITERIA: The Organization is required to implement internal controls over financial reporting to ensure compliance with federal program requirements and to ensure these controls are operating as designed. CONDITION: The Organization does not have adequate segregation of duties for financial reporting purposes. CONTEXT: During dual purpose tests of controls and compliance over direct disbursements, we noted that there is no review and approval process of expense allocations, such as payroll and overhead. While a detailed review process exists for expense allocations made by subrecipients, no such review process exists for the Organization?s own expense allocations. EFFECT: This circumstance increases the opportunity for errors and misstatements to go undetected. CAUSE: This situation is created by limits on staffing and by insufficient resources to retain the number of staff necessary to obtain the optimum level of segregation and oversight. RECOMMENDATION: We recommend that management continue to look for opportunities to improve segregation among staff involved with financial reporting, and to implement processes to ensure that expense allocations are verified for accuracy. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding. REPEAT FINDING: This finding was reported in the Schedule of Findings and Questioned Costs for the year ended June 30, 2021 as item 2021-02.
Finding 2022-002
CRITERIA: The Organization is required to implement internal controls over financial reporting to ensure compliance with federal program requirements and to ensure these controls are operating as designed. CONDITION: The Organization does not have adequate segregation of duties for financial reporting purposes. CONTEXT: During dual purpose tests of controls and compliance over direct disbursements, we noted that there is no review and approval process of expense allocations, such as payroll and overhead. While a detailed review process exists for expense allocations made by subrecipients, no such review process exists for the Organization?s own expense allocations. EFFECT: This circumstance increases the opportunity for errors and misstatements to go undetected. CAUSE: This situation is created by limits on staffing and by insufficient resources to retain the number of staff necessary to obtain the optimum level of segregation and oversight. RECOMMENDATION: We recommend that management continue to look for opportunities to improve segregation among staff involved with financial reporting, and to implement processes to ensure that expense allocations are verified for accuracy. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding. REPEAT FINDING: This finding was reported in the Schedule of Findings and Questioned Costs for the year ended June 30, 2021 as item 2021-02.
Finding 2022-002
CRITERIA: The Organization is required to implement internal controls over financial reporting to ensure compliance with federal program requirements and to ensure these controls are operating as designed. CONDITION: The Organization does not have adequate segregation of duties for financial reporting purposes. CONTEXT: During dual purpose tests of controls and compliance over direct disbursements, we noted that there is no review and approval process of expense allocations, such as payroll and overhead. While a detailed review process exists for expense allocations made by subrecipients, no such review process exists for the Organization?s own expense allocations. EFFECT: This circumstance increases the opportunity for errors and misstatements to go undetected. CAUSE: This situation is created by limits on staffing and by insufficient resources to retain the number of staff necessary to obtain the optimum level of segregation and oversight. RECOMMENDATION: We recommend that management continue to look for opportunities to improve segregation among staff involved with financial reporting, and to implement processes to ensure that expense allocations are verified for accuracy. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding. REPEAT FINDING: This finding was reported in the Schedule of Findings and Questioned Costs for the year ended June 30, 2021 as item 2021-02.
Finding 2022-002
CRITERIA: The Organization is required to implement internal controls over financial reporting to ensure compliance with federal program requirements and to ensure these controls are operating as designed. CONDITION: The Organization does not have adequate segregation of duties for financial reporting purposes. CONTEXT: During dual purpose tests of controls and compliance over direct disbursements, we noted that there is no review and approval process of expense allocations, such as payroll and overhead. While a detailed review process exists for expense allocations made by subrecipients, no such review process exists for the Organization?s own expense allocations. EFFECT: This circumstance increases the opportunity for errors and misstatements to go undetected. CAUSE: This situation is created by limits on staffing and by insufficient resources to retain the number of staff necessary to obtain the optimum level of segregation and oversight. RECOMMENDATION: We recommend that management continue to look for opportunities to improve segregation among staff involved with financial reporting, and to implement processes to ensure that expense allocations are verified for accuracy. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding. REPEAT FINDING: This finding was reported in the Schedule of Findings and Questioned Costs for the year ended June 30, 2021 as item 2021-02.
Finding 2022-002
CRITERIA: The Organization is required to implement internal controls over financial reporting to ensure compliance with federal program requirements and to ensure these controls are operating as designed. CONDITION: The Organization does not have adequate segregation of duties for financial reporting purposes. CONTEXT: During dual purpose tests of controls and compliance over direct disbursements, we noted that there is no review and approval process of expense allocations, such as payroll and overhead. While a detailed review process exists for expense allocations made by subrecipients, no such review process exists for the Organization?s own expense allocations. EFFECT: This circumstance increases the opportunity for errors and misstatements to go undetected. CAUSE: This situation is created by limits on staffing and by insufficient resources to retain the number of staff necessary to obtain the optimum level of segregation and oversight. RECOMMENDATION: We recommend that management continue to look for opportunities to improve segregation among staff involved with financial reporting, and to implement processes to ensure that expense allocations are verified for accuracy. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding. REPEAT FINDING: This finding was reported in the Schedule of Findings and Questioned Costs for the year ended June 30, 2021 as item 2021-02.
Finding 2022-002
CRITERIA: The Organization is required to implement internal controls over financial reporting to ensure compliance with federal program requirements and to ensure these controls are operating as designed. CONDITION: The Organization does not have adequate segregation of duties for financial reporting purposes. CONTEXT: During dual purpose tests of controls and compliance over direct disbursements, we noted that there is no review and approval process of expense allocations, such as payroll and overhead. While a detailed review process exists for expense allocations made by subrecipients, no such review process exists for the Organization?s own expense allocations. EFFECT: This circumstance increases the opportunity for errors and misstatements to go undetected. CAUSE: This situation is created by limits on staffing and by insufficient resources to retain the number of staff necessary to obtain the optimum level of segregation and oversight. RECOMMENDATION: We recommend that management continue to look for opportunities to improve segregation among staff involved with financial reporting, and to implement processes to ensure that expense allocations are verified for accuracy. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding. REPEAT FINDING: This finding was reported in the Schedule of Findings and Questioned Costs for the year ended June 30, 2021 as item 2021-02.
Finding 2022-002
CRITERIA: The Organization is required to implement internal controls over financial reporting to ensure compliance with federal program requirements and to ensure these controls are operating as designed. CONDITION: The Organization does not have adequate segregation of duties for financial reporting purposes. CONTEXT: During dual purpose tests of controls and compliance over direct disbursements, we noted that there is no review and approval process of expense allocations, such as payroll and overhead. While a detailed review process exists for expense allocations made by subrecipients, no such review process exists for the Organization?s own expense allocations. EFFECT: This circumstance increases the opportunity for errors and misstatements to go undetected. CAUSE: This situation is created by limits on staffing and by insufficient resources to retain the number of staff necessary to obtain the optimum level of segregation and oversight. RECOMMENDATION: We recommend that management continue to look for opportunities to improve segregation among staff involved with financial reporting, and to implement processes to ensure that expense allocations are verified for accuracy. VIEWS OF RESPONSIBLE OFFICIALS: The Organization concurs with the finding. REPEAT FINDING: This finding was reported in the Schedule of Findings and Questioned Costs for the year ended June 30, 2021 as item 2021-02.