Finding 1164396 (2024-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-12-10

AI Summary

  • Core Issue: Lack of management review for reimbursement reports submitted to the granting agency.
  • Impacted Requirements: Federal regulations require controls to ensure proper review and approval of financial reports.
  • Recommended Follow-Up: Implement a supervisory review process for all financial reports to ensure compliance and prevent potential payback of funds.

Finding Text

Assistance Listing Number(s): 17.258, 17.259, 17.278 Name of Federal Program or Cluster: WIOA Cluster Name of Federal Agency: Department of Labor Name of Pass-through Entity: Wisconsin Department of Workforce Development Award Period: July 1, 2023 through June 30, 2024 Criteria: Controls should be in place to ensure review and approval of monthly requests for reimbursement prior to submission to the granting agency. Condition: 3 of 36 reports submitted, there was no evidence of management review of approval of the reports prior to submission of the granting agency. Cause: The Organization did not have a supervisory review process implemented for financial reports submitted to the granting agency. Effect or Potential Effect: Requesting excess funds over the amount of expenditures can result in non-compliance with federal regulations and may require payback to the funding source. Recommendation: We recommenced the Organization implement internal controls including a supervisory review process for reports to ensure compliance with reporting requirements. Views of Responsible Officials: The Organization agrees with the finding and is implementing procedures.

Corrective Action Plan

Processes and controls have been implemented so that the accounting staff prepares the grant reimbursement requests which are reviewed and approved by the CEO for submission.

Categories

Subrecipient Monitoring Cash Management Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1164391 2024-001
    Material Weakness Repeat
  • 1164392 2024-002
    Material Weakness Repeat
  • 1164393 2024-001
    Material Weakness Repeat
  • 1164394 2024-001
    Material Weakness Repeat
  • 1164395 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
17.259 WIOA YOUTH ACTIVITIES $846,769
17.278 WIOA DISLOCATED WORKER FORMULA GRANTS $763,032
17.258 WIOA ADULT PROGRAM $763,009
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $722,242
17.277 WIOA NATIONAL DISLOCATED WORKER GRANTS / WIA NATIONAL EMERGENCY GRANTS $535,599
17.270 REENTRY EMPLOYMENT OPPORTUNITIES $132,135
17.268 H-1B JOB TRAINING GRANTS $33,554