Finding 1162220 (2022-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2025-11-12

AI Summary

  • Core Issue: Missing signed applications and supporting documentation for eligibility in three cases, violating federal requirements.
  • Impacted Requirements: Non-compliance with the Uniform Guidance and WIOA program eligibility criteria.
  • Recommended Follow-Up: Implement and monitor new documentation procedures, including eligibility checklists and case file reviews, to ensure compliance and prevent future issues.

Finding Text

Eligibility Criteria – The Uniform Guidance, Part 200.303, requires the Local Workforce Development Area establish and maintain effective internal control over the federal award which provides reasonable assurance the Local Workforce Development Area is managing the federal award in compliance with federal statutes, regulations and the terms of the federal award. In addition, WIOA details criteria individuals must meet in order to be eligible for the WIOA program. Condition – Three cases were identified that did not contain signed applications documenting eligibility approval. In addition, two cases were identified that did not contain supporting documentation for eligibility determination. Cause – The Local Workforce Development Area policies do not require and procedures have not been established to require all documentation for eligibility determination, including signed applications, are included in case files. Effect – The lack of supporting documentation for eligibility determination could result in disbursements being made to ineligible individuals or for unallowable costs or activities. Recommendation – The Local Workforce Development Area should obtain, review and retain documentation to support eligibility determinations to ensure disbursements are made to eligible individuals for allowable costs or activities and are in compliance with requirements of the Uniform Guidance and the WIOA program. Response and Corrective Action Planned – The Northeast Iowa Workforce Development Area acknowledges the finding. Since the period under review, a new Title I service provider has been implemented, and multiple corrective measures have been established to strengthen eligibility determination and documentation. Eligibility checklists and standardized enrollment packets are now required for each program. In addition, the new service provider has instituted a quality assurance process, with two directors conducting case file reviews across the local area. The NEIWDB has hired a compliance specialist to provide oversight, including ongoing, quarterly, and annual monitoring of eligibility and documentation. Title I staff utilize IowaWORKS reports and alerts to support compliance, and regular monthly technical assistance sessions, statewide trainings, and structured onboarding were provided to the new service provider. These measures were implemented beginning July 1, 2024 and are ongoing. The compliance specialist will report monitoring results to the NEIWDB to ensure accountability and corrective follow-up where needed. The Northeast Iowa Local Area believe these actions fully address the issue and will prevent recurrence in future program years. Conclusion – Response accepted.

Corrective Action Plan

The Northeast Iowa Workforce Development Area acknowledges the finding. Since the period under review, a new Title I service provider has been implemented, and multiple corrective measures have been established to strengthen eligibility determination and documentation. Eligibility checklists and standardized enrollment packets are now required for each program. In addition, the new service provider has instituted a quality assurance process, with two directors conducting case file reviews across the local area. The NEIWDB has hired a compliance specialist to provide oversight, including ongoing, quarterly, and annual monitoring of eligibility and documentation. Title I staff utilize IowaWORKS reports and alerts to support compliance, and regular monthly technical assistance sessions, statewide trainings, and structured onboarding were provided to the new service provider. These measures were implemented beginning July 1, 2024 and are ongoing. The compliance specialist will report monitoring results to the NEIWDB to ensure accountability and corrective follow-up where needed. The Northeast Iowa Local Area believe these actions fully address the issue and will prevent recurrence in future program years.

Categories

Allowable Costs / Cost Principles Eligibility Internal Control / Segregation of Duties Subrecipient Monitoring

Other Findings in this Audit

  • 1162219 2022-001
    Material Weakness Repeat
  • 1162221 2022-003
    Material Weakness Repeat
  • 1162222 2022-004
    Material Weakness Repeat
  • 1162223 2022-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
17.258 WIOA ADULT PROGRAM $463,837
17.259 WIOA YOUTH ACTIVITIES $462,213
17.278 WIOA DISLOCATED WORKER FORMULA GRANTS $429,554