Finding Text
Department of Labor
Federal Financial Assistance Listing #17.270, YF-38599-22-60-A-19, 7/1/2023 – 6/30/2024
Reentry Employment Opportunities
Cash Management
Material Weakness in Internal Control over Compliance
Criteria: 2 CFR 200.303(a) states that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition: There were two months identified in which the draw request amount for the Reentry Employment Opportunities program was inadvertently switched with a draw request for a different federal program. The expenditures for the Reentry Employment Opportunities program were incurred prior to the draw down request being completed.
Cause: The review and approval over the draw request did not identify the misclassification between the two grant programs.
Effect: The Organization’s controls did not timely detect the error.
Questioned Costs: None reported.
Context: A non-statistical sample of four out of twelve months were selected for testing. All draws submitted within the selected months were tested.
Repeat Finding from Prior Year: No
Recommendation: We acknowledge a review process is in place, however we recommend that management strengthen their controls surrounding the cash management process to ensure the review of funds being requested for reimbursement agree to the grant program supporting documentation.
Views of Responsible Officials: Management is in agreement.