Finding 1155354 (2024-002)

SIGNIFICANT DEFICIENCY 2024-002 PAYROLL POPULATION Federal Agency: Department of Labor Federal Program: WIOA Adult Programs/WIOA Youth Activities Assistance Listing Number: 17.258, 17.259 Federal Award Numbers and Year: CWI 23-001 MARCH 1, 2023-JUNE 30, 2024 CWI 25-012 JULY 1, 2024-JUNE 30, 2025 CWI 25-013 JULY 1, 2024-JUNE 30, 2025 Questioned Costs: None reported Condition: The Organization uses general ledger detail to create draws to submit reimbursement claims. Some reimbursments are for payroll expenses that are paid through a separate system. The Organization could not reconcile the general ledger to the payroll software detail used to submit reimbursments. Criteria: According to CFR Part 200, the auditee must maintain a system of internal control that provides for the tracking and use of federal funds. Cause: The Organization did not regularly reconcile detailed support from the payroll system to match monthly draws. Effect: The Organization could charge unallowed costs to the grant. Identification of Repeat Finding: This is not a repeat finding. Recommendation: We recommend management perform and maintain monthly reconciliations of the payroll software, general ledger, and draw detail that all agree. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding, will verify coding in the general ledger and reconcile the general ledger to the draw request and payroll reports.