Finding 1151456 (2023-004)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2025-08-28
Audit: 365197
Organization: New Orleans Career Center (LA)

AI Summary

  • Core Issue: Lack of documentation for personnel employment contracts leads to compliance risks with federal funding.
  • Impacted Requirements: Failure to meet 2 CFR 200.303(a) regarding effective internal controls over federal awards.
  • Recommended Follow-Up: Management should create and enforce policies to ensure proper documentation for federal fund expenditures.

Finding Text

ALN 10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program United States Department of Agriculture Passed through the Louisiana Department of Children and Family Services 2023 Funding Criteria: Per 2 CFR 200.303(a), entities should “establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.” Condition: Documentation for personnel employment contracts (payroll) was not maintained resulting in a systemic issue. Cause: The Organization has not designed and implemented policies and procedures to ensure documentation of employment contracts was properly maintained to support federal award expenditures. Effect: The Organization could use federal funds to pay expenditures that are not allowable activities or costs. Recommendation: We recommend management design and implement policies and procedures to ensure appropriate support is maintained for expenditures of federal funds. Management Response: See corrective action plan on page 31.

Categories

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 575014 2023-004
    Significant Deficiency
  • 575015 2023-005
    Significant Deficiency
  • 575016 2023-005
    Significant Deficiency
  • 1151457 2023-005
    Significant Deficiency
  • 1151458 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $382,446
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $352,882
17.280 Wioa Dislocated Worker National Reserve Demonstration Grants $220,244
84.287 Twenty-First Century Community Learning Centers $70,302
90.200 Delta Regional Authority $67,943