Finding Text
2023-002 WIOA Cost Reimbursement
Federal Program: WIOA Youth Programs
CFDA Number: 17.259
Compliance Requirement: Reporting
Repeat Finding: Yes
Type of Finding: Material weakness
Questioned Costs: $4,085
Criteria: According to Title 2 CFR § 200.303(a), the non-Federal entity must 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.
Condition: Access, Inc’s internal controls are not adequate to ensure that the cost reimbursements are accurately reported. Access, Inc. did not accurately report payroll costs on the reimbursement claim forms.
Cause: The internal controls over the payroll processes were not adequately enforced to ensure accurate reporting of the cost reimbursement of federal awards. Effect: Access, Inc. did not properly report their federal expenditures. The incorrect reporting could result in improper use of federal funds and noncompliance with federal regulations.
Recommendation: We recommend that Access, Inc. strengthen its internal control processes over payroll processing and cost reimbursement. Specifically, we suggest implementing the following measures:
1. Provide additional training to staff involved in payroll processing.
2. Establish procedures and implement more precise controls to ensure that expenditures are properly reviewed and approved before being charged to a federal award.
Management’s Response: Access, Inc. concurs with the finding and has begun implementing corrective actions. The finance department is in the process of enhancing the internal control procedures to ensure accurate and complete reporting of federal expenditures. Additionally, training sessions are being scheduled for the relevant personnel to address the identified issues and prevent future occurrences. Access, Inc. has recently employed a CFO with extensive experience with the Department of Labor grants and contracts, to assist with the accounting process which will enhance the organizations’ ability to ensure accounting records are accurate and complete.