Finding Text
AL number and title: WIOA Cluster - 17.258, 17.259 and 17.278
Coronavirus State and Local Fiscal Recovery Funds - 21.027 VA Supportive Services for Veteran
Families Program - 64.033 Refugee and Entrant Assistance State/Replacement Designee Administered
Programs - 93.566
Federal award identification number and year: N/A
Name of federal agency: U.S. Departments of Labor, Treasury, Veteran's Affairs and Health and Human Services
Name of pass-through entities: State of California Employment Development Department; County of Los Angeles Workforce Development, Aging, and Community Services Department; City of Los Angeles Economic and Workforce Development Department; Catholic Charities of Los Angeles
Repeat finding: Yes. 2022-007
Criteria: Under the Uniform Guidance, specifically 2 CFR 200.403(g), charges to Federal
awards must be documented and supported by a system of internal controls, including documentation
of approval of expenses.
Condition: Documentation for certain expenses was unavailable or incomplete.
Cause: Management currently lacks sufficient resources to locate all supporting
documentation. The work from home environment has impacted existing processes and retention of
information, along with turnover in the accounting department.
Effect or potential effect: Original calculations of certain cost allocations were not retained and could not be reperformed. The amounts we noted were not material, but this is a repeat finding that has not been fully
remediated.
Questioned costs: None to be reported.
Context: During 2023, the documentation for allocation of certain shared costs, such as
rent, were not fully retained.
Recommendation: Management should revise its transaction documentation system to allow for
centralized and accessible storage of support for programmatic costs by all appropriate personnel
who interact with external auditors, including local funding sources. Management should retain
journal entry documentation for all types of journal entries impacting Federal contracts. View of Responsible Official: We agree and the lack of implementation is a direct result of turnover (resignation of newly hired Director of Budgeting and Compliance ). A new search is currently underway. Once a new Director is hired, process documentation and a central database repository will be fully addressed.