FAC Explorer

Finding 1061890 (2022-007)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-08-29
Audit: 318179
Organization: County of Imperial (CA)
Auditor: The Pun Group LLP

AI Summary

  • Core Issue: ICWDO failed to ensure that reported amounts matched the County's general ledger and SEFA, and lacked proper segregation of duties in report preparation and approval.
  • Impacted Requirements: Compliance with OMB guidance on internal controls and accurate financial reporting for federal awards.
  • Recommended Follow-Up: ICWDO should strictly follow its policies to ensure report accuracy and implement segregation of duties for report preparation and approval.

Finding Text

Finding 2022-007 Internal Control and Compliance over Payroll Expenditures Information on the Federal Program: Assistance Listing Number(s): 17.258, 17.259, 17.278 Federal Program Name: Workforce Innovation and Opportunity Act (WIOA) Federal Agency: U.S. Department of Labor Pass-Through Entity: California Employment Development Department Federal Award Number and Award Year: AA311008 - FY21-22 Criteria: Title 2 - Grants and Agreements. Subtitle A - Office of Management and Budget Guidance for Grants and Agreements. Chapter II - Office of Management and Budget Guidance. Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Subpart D - Post Federal Award Requirements. Standards for Financial and Program Management. §200.303 Internal controls (2 CFR 200.303): The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). OMB No. 1205-0461 states that all Employment and Training Administration (ETA) grantees are required to submit quarterly financial reports for each grant award they receive. Financial data is required to be reported cumulatively from grant inception through the end of each reporting period. Condition: During our testing of Imperial County Workforce Development Office’s (ICWDO) provisions for reporting requirements, we noted the following instances: • For two (2) of the two (2) quarterly reports from a nonstatistical sample, the amounts reported did not agree to the amounts recorded in the County’s general ledger and SEFA; • For four (4) of the four (4) monthly reports from a nonstatistical sample, the amounts reported did not agree to the amounts recorded in the County’s general ledger and SEFA; • For four (4) of the four (4) monthly reports from a nonstatistical sample, the reports were prepared, reviewed, and approved by the same individual • For one (1) of the one (1) closeout report consisting of the entire population, the amounts reported did not agree to the amounts recorded in the County’s general ledger and SEFA; Cause: ICWDO did not ensure the amounts reported on the quarterly financial reports agreed to the amounts recorded in the County’s general ledger and SEFA and did not ensure there was segregation of duties over the preparation and review and approval of the monthly reports. Effect: The ICWDO department’s procedures were not consistently followed, which requires reports to agree to the amounts recorded in the general ledger and SEFA and requires reports to be reviewed and approved by a separate individual. Identification as a Repeat Finding, If Applicable: Yes. See Finding 2021-010. Questioned Costs: No questioned costs were identified. Recommendation: We recommend ICWDO adhere to their policies and procedures and ensure amounts reported on the quarterly financial reports agree to the County’s general ledger and SEFA and ensure segregation of duties over the preparation and approval of monthly reports. View of Responsible Officials and Planned Corrective Action: See separate Corrective Action Plan.

Categories

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 485445 2022-006
    Material Weakness Repeat
  • 485446 2022-006
    Material Weakness Repeat
  • 485447 2022-006
    Material Weakness Repeat
  • 485448 2022-007
    Significant Deficiency Repeat
  • 485449 2022-007
    Significant Deficiency Repeat
  • 485450 2022-007
    Significant Deficiency Repeat
  • 485451 2022-005
    Significant Deficiency
  • 485452 2022-005
    Significant Deficiency
  • 485453 2022-005
    Significant Deficiency
  • 485454 2022-005
    Significant Deficiency
  • 1061887 2022-006
    Material Weakness Repeat
  • 1061888 2022-006
    Material Weakness Repeat
  • 1061889 2022-006
    Material Weakness Repeat
  • 1061891 2022-007
    Significant Deficiency Repeat
  • 1061892 2022-007
    Significant Deficiency Repeat
  • 1061893 2022-005
    Significant Deficiency
  • 1061894 2022-005
    Significant Deficiency
  • 1061895 2022-005
    Significant Deficiency
  • 1061896 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.558 Temporary Assistance for Needy Families - Administration $11.16M
93.558 Temporary Assistance for Needy Families - Assistance Payments $8.17M
21.027 Covid-19 - Coronavirus State & Local Fiscal Recovery Funds $5.86M
93.563 Child Support Enforcement $5.26M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program - Administration $4.58M
93.778 Medical Assistance Program - Mental Health Administrative Cost (short-Doyle) $3.48M
93.778 Medical Assistance Program - (title Xix, Dhs Medi-Cal) $2.87M
93.658 Foster Care Title IV-E - Assistance Payments $2.82M
17.258 Wioa Adult Program $2.82M
17.259 Wioa Youth Activities $2.81M
17.278 Wioa Dislocated Worker Formula Grants $2.44M
93.659 Adoption Assistance - Assistance Payments $2.40M
93.658 Foster Care Title IV-E - Administration $2.33M
14.231 Emergency Solutions Grant Program $1.50M
93.778 Medical Assistance Program - (title Xix, Ihss) $1.23M
93.959 Block Grants for Prevention and Treatment of Substance Abuse $1.04M
93.323 Covid-19 - Epidemiology and Laboratory Capacity for Infectious Diseases (elc) Diseases (elc) - Enhancing Detection Expansion $987,469
93.323 Covid-19 - Epidemiology and Laboratory Capacity for Infectious Diseases (elc) - Enhancing Detection Expansion $967,578
93.090 Guardianship Assistance - Assistance Payments $880,584
93.268 Immunization Cooperative Agreements $866,856
93.639 State Planning Grants for Qualifying Community-Based Mobile Crisis Intervention Services $827,654
93.958 Block Grants for Community Mental Health Services - Casa Serena $823,090
93.958 Block Grants for Community Mental Health Services $764,945
93.558 Temporary Assistance for Needy Families - Emergency Assistance Foster Care $621,551
93.667 Social Services Block Grant - Title Xx - Administration $609,690
93.994 Maternal and Child Health Services Block Grant to the States $535,416
93.659 Adoption Assistance - Administration $498,283
93.778 Medical Assistance Program - Youth Opioid Response $333,334
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program - Education $323,239
95.001 High Intensity Drug Trafficking Areas Program $303,403
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $301,569
93.778 Medical Assistance Program - Mental Health Administrative Cost (sud) $288,220
93.994 Maternal and Child Health Services Block Grant to the States - Maternal, Child, and Adolescent Health $246,515
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $242,080
16.575 Crime Victim Assistance - Victim Witness Assistance Program $238,142
93.323 Covid-19 - Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $230,860
93.645 Stephanie Tubbs Jones Child Welfare Services Program - Administration $214,071
16.588 Violence Against Women Formula Grants $194,617
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $193,770
93.667 Social Services Block Grant - Title Xx - Assistance Payments $179,624
93.778 Medical Assistance Program - In-Home Supportive Services - Public Authority (ihss-Pa) $155,853
66.034 Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act $153,902
93.917 Hiv Care Formula Grants $150,486
10.528 Usda Wic Telehealth Evaluation Collaborative $150,191
66.001 Air Pollution Control Program Support $150,000
93.558 Temporary Assistance for Needy Families $142,403
93.889 National Bioterrorism Hospital Preparedness Program $139,487
14.241 Housing Opportunities for Persons with Aids (hopwa) $134,308
93.069 Public Health Emergency Preparedness $124,826
93.778 Medical Assistance Program - Family Support Services - Health Care Program for Children in Foster Care (hcpcfc) $117,860
93.603 Adoption and Legal Guardianship Incentive Payments $108,408
16.575 Crime Victim Assistance - Unserved/underserved Victim Advocacy and Outreach Program $105,365
10.766 Community Facilities Loans and Grants $94,815
93.197 Childhood Lead Poisoning Prevention Projects, State and Local Childhood Lead Poisoning Prevention and Surveillance of Blood Lead Levels in Children $90,104
16.922 Equitable Sharing Program $86,267
93.052 National Family Caregiver Support, Title Iii, Part E $85,662
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $78,183
93.778 Medical Assistance Program - (title Xix, Aps/csbg) $77,217
97.067 Homeland Security Grant Program $74,476
97.042 Emergency Management Performance Grants $69,606
93.556 Marylee Allen Promoting Safe and Stable Families Program $68,188
93.323 Covid-19 - Epidemiology and Laboratory Capacity for Infectious Diseases (elc) - Border Infectious Disease Surveillance (bids) Program $62,037
93.150 Projects for Assistance in Transition From Homelessness (path) $60,982
93.069 Covid-19 - Public Health Emergency Preparedness $60,774
93.053 Nutrition Services Incentive Program $48,017
17.277 Wioa National Dislocated Worker Grants / Wia National Emergency Grants $34,723
93.042 Special Programs for the Aging, Title Vii, Chapter 2, Long Term Care Ombudsman Services for Older Individuals $33,407
20.106 Covid-19 - Airport Improvement Program, Covid-19 Airports Programs, and Infrastructure Investment and Jobs Act Programs $28,876
14.267 Continuum of Care Planning Activities $21,196
14.267 Supportive Services, Administrative Costs (cap Ii) $20,880
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $16,708
93.778 Medical Assistance Program - Family Support Services - Psychotropic Medication Monitoring & Oversight (pmm&o) $14,222
93.043 Special Programs for the Aging, Title Iii, Part D, Disease Prevention and Health Promotion Services $12,946
20.205 Highway Planning and Construction $9,974
93.778 Medical Assistance Program - (title Xix, Cws IV-E) $8,864
93.566 Refugee and Entrant Assistance- State Administered Programs $7,398
93.778 Medical Assistance Program - (title Xix, Cmsp) $6,089
10.025 Plant and Animal Disease, Pest Control, and Animal Care $5,203
21.016 Equitable Sharing $4,030
14.218 Community Development Block Grants/entitlement Grants $3,715
93.042 Special Programs for the Aging, Title Vii, Chapter 2, Long Term Care Ombudsman Services for Older Individuals - Robotic Pets $3,405
93.041 Special Programs for the Aging, Title Vii, Chapter 3, Programs for Prevention of Elder Abuse, Neglect, and Exploitation $3,048
93.778 Medical Assistance Program - County-Based Medi-Cal Administrative Activities (cmaa) $2,296
11.302 Economic Development Support for Planning Organizations $1,902
16.738 Edward Byrne Memorial Justice Assistance Grant Program $365
93.889 Covid-19 - National Bioterrorism Hospital Preparedness Program $43
14.239 Home Investment Partnerships Program $18