Finding Text
Finding No.: 2021-005
Federal Agency: U.S. Department of Labor
AL Program: 17.225 Unemployment Insurance
Federal Award No.: UI-34839-20-55-A-70
Area: Reporting
Questioned Costs: $0
Criteria: In accordance with applicable reporting requirements, the expenditures reported in the quarterly reports should be supported by underlying accounting records.
Condition: For all quarterly ETA 9130 reports tested, no underlying accounting records are available to support the expenditures reported in the reports.
No. Report Period Document Number Program Category Cumulative Expenditures
1 Quarterly Report - Q1 10/01/2020-12/31/2020 UI34839Z40 FPUC Benefits - FY20 $7,151,000
2 Quarterly Report - Q2 01/01/2021-3/31/2021 UI34839CA0 FPUC Administration - FY21 25,814
3 Quarterly Report - Q2 01/01/2021-3/31/2021 UI34839Z20 PUA Benefits - FY20 7,626,000
4 Quarterly Report - Q2 01/01/2021-3/31/2021 UI34839Z30 PUA Administration - FY20 181,415
5 Quarterly Report - Q2 01/01/2021-3/31/2021 UI34839C70 PUA Benefits - FY21 5,057,474
6 Quarterly Report - Q2 01/01/2021-3/31/2021 UI34839C90 FPUC Benefits - FY21 1,845,000
7 Quarterly Report - Q3 04/01/2021-6/30/2021 UI34839CA0 FPUC Administration - FY21 58,114
8 Quarterly Report - Q4 07/01/2021-9/30/2021 UI34839C70 PUA Benefits - FY21 5,758,576
Total: $27,703,393
Cause: The Republic did not effectively monitor compliance with applicable reporting requirements.
Effect: The Republic is in noncompliance with applicable reporting requirements. No question cost is presented; however, we are unable to verify the accuracy and completeness of the reports due to lack of the underlying accounting records supporting the expenditures reported in the ETA 9130 reports. This constitutes a scope limitation, and the compliance opinion is modified accordingly.
Recommendation: The Republic should strengthen monitoring controls over applicable reporting requirements. Responsible personnel should maintain underlying accounting records to substantiate reported amounts.
Views of Responsible Officials: The Republic’s Corrective Action Plan does not indicate disagreement and provides planned corrective action.