FAC Explorer

Finding 1164529 (2022-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2025-12-11
Audit: 374110
Organization: State of South Carolina (SC)
Auditor: SCOTT AND COMPANY LLC

AI Summary

  • Core Issue: The Agency missed deadlines for submitting required quarterly and monthly reports to the Department of Labor, leading to noncompliance with reporting requirements.
  • Impacted Requirements: Reports such as ETA 191, ETA 2208A, ETA 2112, and ETA 9052 were not submitted on time, violating OMB Compliance Supplement guidelines.
  • Recommended Follow-Up: Management should review grant agreements and OMB requirements, and establish controls to ensure timely report submissions moving forward.

Finding Text

Item 2022-003: Reporting (Material Weakness over Reporting and Non-Material Noncompliance) Condition: The Agency did not submit certain quarterly reports to the United States Department of Labor (“National Office”) by the required due dates. Accordingly, the Agency did not comply with the Reporting compliance requirements related to the Unemployment Insurance program. Criteria: Per Part 4 of the OMB Compliance Supplement: The ETA 191 Report is required to be submitted on a quarterly basis to the National Office by the 25th day of the month following the close of the quarter. The ETA 2208A Report is required to be submitted on a quarterly basis to the National Office by the 45th day of the month following the close of the quarter. The ETA 2112 Report is required to be submitted on a monthly basis to the National Office by the first day of the second month following the close of the month of reference. The ETA 9052 Report is required to be submitted on a monthly basis to the National Office by the 30th day of the month following the month of reference. Cause: Internal controls are not in place to ensure that all required reports are being submitted in accordance with the United States Department of Labor’s timelines. The reports were delayed due to program and system resources focused on claims processing as well as personnel shortages. Effect: As a result, the Agency becomes more susceptible to having its level of federal award funding reduced by the United States Department of Labor when it violates its Reporting compliance requirements applicable to the Unemployment Insurance program. Context: We inspected a sample of quarterly reports and noted the following exceptions: Unemployment Insurance – One (1) ETA 191 quarterly report; Unemployment Insurance – Two (2) ETA 2208A quarterly reports; Unemployment Insurance – One (1) ETA 2112 monthly report; Unemployment Insurance – One (1) ETA 9052 monthly report. Recommendation: We recommend that management carefully review the terms and conditions included in the supporting grant agreements and the Reporting requirements included in the OMB Compliance Supplement applicable to the Unemployment Insurance and the Employment Services Cluster programs and implement controls to ensure that all reports are filed on a timely basis.

Corrective Action Plan

SCDEW implemented a corrective action plan in response to this funding for the year ended June 30,2021, in response to similar findings in prior year audits. The SCDEW Enterprise and Project Management Office (EPMO) was originally tasked with monitoring agency wide reporting deadlines and was transferred to Executive Director’s Office. SCDEW continues to utilize the master reporting database developed by EPMO that includes relevant identifying information including report name, agency, SCDEW contact, reporting frequency and due dates. Individual reporters at SCDEW submit data to the Executive Director’s Office on the status of the required filings. The Executive Director’s Office routine reports the status of filings to executive leadership. The Agency’s contact person for the corrective action plan is Jacquelyn Carlen, CFO. The corrective action plan was implemented on June 20, 2021, and is ongoing.

Categories

Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1164526 2022-001
    Material Weakness Repeat
  • 1164527 2022-001
    Material Weakness Repeat
  • 1164528 2022-003
    Material Weakness Repeat
  • 1164530 2022-002
    Material Weakness Repeat
  • 1164531 2022-002
    Material Weakness Repeat
  • 1164532 2022-002
    Material Weakness Repeat
  • 1164533 2022-002
    Material Weakness Repeat
  • 1164534 2022-002
    Material Weakness Repeat
  • 1164535 2022-002
    Material Weakness Repeat
  • 1164536 2022-002
    Material Weakness Repeat
  • 1164537 2022-002
    Material Weakness Repeat
  • 1164538 2022-002
    Material Weakness Repeat
  • 1164539 2022-002
    Material Weakness Repeat
  • 1164540 2022-002
    Material Weakness Repeat
  • 1164541 2022-002
    Material Weakness Repeat
  • 1164542 2022-002
    Material Weakness Repeat
  • 1164543 2022-002
    Material Weakness Repeat
  • 1164544 2022-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
17.225 UNEMPLOYMENT INSURANCE $49.91M
17.278 WIOA DISLOCATED WORKER FORMULA GRANTS $13.12M
17.258 WIOA ADULT PROGRAM $10.90M
17.259 WIOA YOUTH ACTIVITIES $9.73M
17.207 EMPLOYMENT SERVICE/WAGNER-PEYSER FUNDED ACTIVITIES $8.88M
17.801 JOBS FOR VETERANS STATE GRANTS $1.54M
17.804 LOCAL VETERANS' EMPLOYMENT REPRESENTATIVE PROGRAM $1.33M
17.002 LABOR FORCE STATISTICS $988,995
17.245 TRADE ADJUSTMENT ASSISTANCE $933,778
17.271 WORK OPPORTUNITY TAX CREDIT PROGRAM (WOTC) $451,540
12.617 ECONOMIC ADJUSTMENT ASSISTANCE FOR STATE GOVERNMENTS $369,493
17.273 TEMPORARY LABOR CERTIFICATION FOR FOREIGN WORKERS $217,216
17.277 WIOA NATIONAL DISLOCATED WORKER GRANTS / WIA NATIONAL EMERGENCY GRANTS $132,777
17.270 REENTRY EMPLOYMENT OPPORTUNITIES $5,144