Reference Number:
2024-010
Prior Year Finding:
2023-008; 2022-017
Federal Agency:
U.S. Department of Labor
State Agency:
Vermont Department of Labor
Federal Program:
Unemployment Insurance
Assistance Listing Number:
17.225
Award Number and Period:
Admin 24A55UI000063 (10/1/2023-12/31/2026), DUA 23A6...
Reference Number:
2024-010
Prior Year Finding:
2023-008; 2022-017
Federal Agency:
U.S. Department of Labor
State Agency:
Vermont Department of Labor
Federal Program:
Unemployment Insurance
Assistance Listing Number:
17.225
Award Number and Period:
Admin 24A55UI000063 (10/1/2023-12/31/2026), DUA 23A60UD000013 (7/14/2023 - 7/14/2026)
Compliance Requirement:
Period of Performance
Type of Finding:
Significant Deficiency in Internal Control over Compliance, Other Matters
Recommendation: We recommend the Department review and enhance its procedures and controls to ensure that prior to charging costs to the program, they are incurred within an award’s allowable period of performance.
Views of responsible officials:
Management agrees with the finding.
Corrective Action Plan:
The Department will review its procedures and internal controls and update as necessary to ensure that expenditures are incurred within the allowable period of performance for respective awards. It should be noted that during the period of performance for which this audit was conducted there were a large number of personnel changes and shifts. The position that was responsible for the majority of these duties retired in January 2024. We proactively hired for her replacement a year before she retired. Over the course of the year our replacement took over more and more duties. In the process of this replacement, we have completed a tremendous amount of evaluation of our assigned duties, processes, workflow, training, and documentation. Not only in this role, but we are also undergoing a division and business unit wide analysis of our internal controls and workflow.
It should also be noted that the UI admin funds are considered ‘formula funds’ from the US DOL. We are expected to run this program year-round with no gaps in service or performance. The funding that we receive from US DOL is based on an antiquated formula that breaks down the amount that is budgeted by Congress between 52 state and territories. We generally do not receive enough funding for the entire year. Also, with the recent trend of Congress to utilize the tool of the Continuing Resolution our funding is often ambiguous until most of the program year is over. We have at times seen our funding cut once a budget had been passed by Congress even though there was only about 3 months left in the program year. We are still expected to run this program and ‘find other sources of funding’. This does make the adherence to the period of performance challenging. However, as we evaluate our internal controls and procedures over the coming months, we will make note of every opportunity to strengthen this function to ensure that all charges applied to program funds are relevant, within the period of performance of the award, and are correctly reviewed and signed.
Scheduled Completion Date of Corrective Action Plan:
April 1, 2025
Contacts for Corrective Action Plan:
Chad Wawrzyniak, Financial Director II
chad.wawrzyniak@vermont.gov