Finding Text
Finding 2024-001 Agency: Department of Labor Program: Apprenticeship State Funds (AL No. 17.285) Material Weakness over Allowable Costs/Cost Principles Repeat Finding: No Condition: For 1 out of 24 selections, the amounts recorded in the SEFA did not match the supporting documentation. For 3 out of 24 selections, there was incomplete supporting documentation provided which was related to unsigned/unapproved subrecipient reimbursement request forms and missing invoices. For 2 out of 24 selections, the amounts recorded were noted to be duplicated and included in the SEFA twice. However, we noted that these costs were not yet billed to the Department of Labor. Criteria: As provided in 2 CFR section 200.403: Factors affecting allowability of costs, except where otherwise authorized by statute, must by adequately documented to be allowable under Federal awards. Cause: AACC received amounts from their subrecipient or vendor to accrue into their SEFA for fiscal year 2024, but did not receive all invoice or receipt documentation to ensure accuracy of the costs.. Effect: AACC was not in compliance with the Allowable Costs/Cost Principles requirements in accordance with Uniform Guidance. Questioned Costs: $85,758.22 Recommendation: We recommend AACC implements a policy to require all subrecipients and vendors to submit complete expenditure documentation within a reasonable timeframe and AACC to properly review the documentation for accuracy and completeness. We also recommend AACC implements a policy to properly track invoices during the accrual and payment process to ensure duplicate entries do not occur.Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report.