Finding 1077519 (2023-004)

Significant Deficiency Repeat Finding
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-09-30
Audit: 323354
Organization: Jvs Socal (CA)
Auditor: Armanino LLP

AI Summary

  • Core Issue: Incomplete documentation for expenses related to federal awards, impacting compliance with internal control requirements.
  • Impacted Requirements: Failure to meet standards set by 2 CFR 200.403(g) for documenting and approving expenses.
  • Recommended Follow-Up: Revise the documentation system for centralized storage of expense support and retain all journal entry documentation for federal contracts.

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.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 501074 2023-004
    Significant Deficiency Repeat
  • 501075 2023-005
    Significant Deficiency
  • 501076 2023-006
    Significant Deficiency
  • 501077 2023-004
    Significant Deficiency Repeat
  • 501078 2023-005
    Significant Deficiency
  • 501079 2023-004
    Significant Deficiency Repeat
  • 501080 2023-005
    Significant Deficiency
  • 501081 2023-004
    Significant Deficiency Repeat
  • 501082 2023-005
    Significant Deficiency
  • 1077516 2023-004
    Significant Deficiency Repeat
  • 1077517 2023-005
    Significant Deficiency
  • 1077518 2023-006
    Significant Deficiency
  • 1077520 2023-005
    Significant Deficiency
  • 1077521 2023-004
    Significant Deficiency Repeat
  • 1077522 2023-005
    Significant Deficiency
  • 1077523 2023-004
    Significant Deficiency Repeat
  • 1077524 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.558 Temporary Assistance for Needy Families $8.69M
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $1.37M
21.027 Coronavirus State and Local Fiscal Recovery Funds $586,534
64.033 Va Supportive Services for Veteran Families Program $479,175
17.805 Homeless Veterans� Reintegration Program $185,891
17.802 Veterans Employment Program $149,275
17.278 Wioa Dislocated Worker Formula Grants $121,354
17.258 Wioa Adult Program $54,051
14.218 Community Development Block Grants/entitlement Grants $30,383
17.259 Wioa Youth Activities $10,108
17.278 Wioa Adult Program $8,486