FAC Explorer

Finding 1057774 (2023-003)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-08-16
Audit: 317396
Organization: Rural Resources Community Action (WA)
Auditor: Moss Adams

AI Summary

  • Core Issue: There is a material weakness in internal controls over compliance, leading to late and unsupported reporting for the WIOA Cluster grants.
  • Impacted Requirements: Federal regulations require timely submission of closeout reports supported by accurate accounting records, which were not met.
  • Recommended Follow-Up: Implement a review process to catch errors before submission, maintain supporting documentation, and ensure reports are submitted on time.

Finding Text

FINDING 2023‐003 – Reporting; Material Weakness in Internal Control over Compliance and Instance of Material Noncompliance Department of Labor Assistance Listing Numbers: 17.258, 17.259, 17.278 Federal Program Names: WIOA Cluster Award Years: 2019-2023, 2020-2023 Criteria: Federal regulations and grant and contract conditions require that applicable reports be properly supported by accounting records and submitted. In accordance with the grant agreements, a close out report by contract is required to be submitted within 60 days of the end of the grant award period. Financial information reported within the closeout reports should be maintained as support and should be reviewed by a different person that the preparer. Condition and context: Grant expenditures were not tracked appropriately by contract within the general ledger system, and changes were made subsequent to the close out process between grants. Reconciliations were not performed timely and reviewed to ensure accuracy of the amounts reported. Additionally, the close out report was submitted late. Questioned costs: None. Effect: Without centralized controls that include monitoring of reporting due dates and retention of documentation supporting the amounts in the reports, reports are not submitted and are not properly supported. Cause: This occurred because of a lack of controls to segregate the duties between the preparer of the reports and supporting documentation and a reviewer to ensure accuracy. Repeat finding: No. Recommendation: We recommend the Organization implement a review control in the reporting process to identify any errors prior to submitting reports, maintain supporting documentation, and ensure timely submission. Views of responsible officials and planned corrective actions: Management agrees with the assessment and is in the process of implementing corrective action. The Organization has tightened controls for grant management. Claims are subject to two levels of review before submission. Due dates of reports are closely tracked and supporting documentation is retained. Additionally, the improved controls that have been implemented in the fiscal department help to ensure accurate and timely reporting.

Categories

Subrecipient Monitoring Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 481322 2023-002
    Material Weakness
  • 481323 2023-002
    Material Weakness
  • 481324 2023-003
    Material Weakness
  • 481325 2023-003
    Material Weakness
  • 481326 2023-003
    Material Weakness
  • 481327 2023-003
    Material Weakness
  • 481328 2023-003
    Material Weakness
  • 481329 2023-003
    Material Weakness
  • 481330 2023-003
    Material Weakness
  • 481331 2023-003
    Material Weakness
  • 481332 2023-003
    Material Weakness
  • 481333 2023-004
    Significant Deficiency Repeat
  • 481334 2023-004
    Significant Deficiency Repeat
  • 481335 2023-004
    Significant Deficiency Repeat
  • 481336 2023-004
    Significant Deficiency Repeat
  • 481337 2023-004
    Significant Deficiency Repeat
  • 481338 2023-004
    Significant Deficiency Repeat
  • 481339 2023-004
    Significant Deficiency Repeat
  • 481340 2023-004
    Significant Deficiency Repeat
  • 481341 2023-004
    Significant Deficiency Repeat
  • 481342 2023-004
    Significant Deficiency Repeat
  • 481343 2023-004
    Significant Deficiency Repeat
  • 481344 2023-004
    Significant Deficiency Repeat
  • 481345 2023-004
    Significant Deficiency Repeat
  • 481346 2023-004
    Significant Deficiency Repeat
  • 481347 2023-004
    Significant Deficiency Repeat
  • 481348 2023-004
    Significant Deficiency Repeat
  • 481349 2023-004
    Significant Deficiency Repeat
  • 481350 2023-004
    Significant Deficiency Repeat
  • 1057764 2023-002
    Material Weakness
  • 1057765 2023-002
    Material Weakness
  • 1057766 2023-003
    Material Weakness
  • 1057767 2023-003
    Material Weakness
  • 1057768 2023-003
    Material Weakness
  • 1057769 2023-003
    Material Weakness
  • 1057770 2023-003
    Material Weakness
  • 1057771 2023-003
    Material Weakness
  • 1057772 2023-003
    Material Weakness
  • 1057773 2023-003
    Material Weakness
  • 1057775 2023-004
    Significant Deficiency Repeat
  • 1057776 2023-004
    Significant Deficiency Repeat
  • 1057777 2023-004
    Significant Deficiency Repeat
  • 1057778 2023-004
    Significant Deficiency Repeat
  • 1057779 2023-004
    Significant Deficiency Repeat
  • 1057780 2023-004
    Significant Deficiency Repeat
  • 1057781 2023-004
    Significant Deficiency Repeat
  • 1057782 2023-004
    Significant Deficiency Repeat
  • 1057783 2023-004
    Significant Deficiency Repeat
  • 1057784 2023-004
    Significant Deficiency Repeat
  • 1057785 2023-004
    Significant Deficiency Repeat
  • 1057786 2023-004
    Significant Deficiency Repeat
  • 1057787 2023-004
    Significant Deficiency Repeat
  • 1057788 2023-004
    Significant Deficiency Repeat
  • 1057789 2023-004
    Significant Deficiency Repeat
  • 1057790 2023-004
    Significant Deficiency Repeat
  • 1057791 2023-004
    Significant Deficiency Repeat
  • 1057792 2023-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
17.258 Wia Adult Program $594,630
17.259 Wia Youth Activities $567,858
10.766 Community Facilities Loans and Grants $427,154
14.231 Emergency Solutions Grant Program $344,323
10.218 Usda Loan $332,978
14.239 Home Investment Partnerships Program $331,769
93.568 Low-Income Home Energy Assistance $243,869
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $242,520
17.278 Wia Dislocated Worker Formula Grants $142,826
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $140,038
93.569 Community Services Block Grant $125,215
93.499 Low Income Household Water Assistance Program $98,252
10.568 Emergency Food Assistance Program (administrative Costs) $94,600
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $91,162
93.052 National Family Caregiver Support, Title Iii, Part E $82,532
93.575 Child Care and Development Block Grant $73,615
93.600 Head Start $68,665
17.277 Workforce Investment Act (wia) National Emergency Grants $62,239
16.575 Crime Victim Assistance $61,610
14.169 Housing Counseling Assistance Program $60,115
81.999 Bonneville Power Administration/liee Program $58,892
10.218 Farmers Home Administration Loan $49,141
93.053 Nutrition Services Incentive Program $36,618
93.778 Medical Assistance Program $26,784
93.558 Temporary Assistance for Needy Families $25,687
10.558 Child and Adult Care Food Program $24,814
10.565 Commodity Supplemental Food Program $24,363
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $24,289
10.U01 Consolidated Approp Act Funds 01.22-09.22 $23,032
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $21,915
93.497 Family Violence Prevention and Services/ Sexual Assault/rape Crisis Services and Supports $15,240
16.588 Violence Against Women Formula Grants $13,480
10.415 Rural Rental Housing Loans $12,760
81.042 Weatherization Assistance for Low-Income Persons $12,147
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $11,146
21.027 Coronavirus State and Local Fiscal Recovery Funds $9,577
93.136 Injury Prevention and Control Research and State and Community Based Programs $7,250
64.035 Veterans Transportation Program $4,558
10.182 Local Food Purchase Assistance $3,382
21.019 Coronavirus Relief Fund $2,275
21.023 Emergency Rental Assistance Program $229