Finding Text
Finding 2025-002: Reporting Federal Program: Building an Inclusive Workforce: Lifting Underrepresented Communities Assistance Listing Number: 17.289 Federal Agency: U.S. Department of Labor Federal Award Number(s): 24A60CP000157-01-04 Type of Finding: Significant Deficiency in Internal Control over Compliance and Non-compliance Criteria: In accordance with 2 CFR §200.303, non-Federal entities are required to establish and maintain effective internal control over Federal awards to provide reasonable assurance that the entity is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Such internal controls should be consistent with the Standards for Internal Control in the Federal Government or the COSO Internal Control—Integrated Framework, including controls designed to ensure timely submission of required reports. Additionally, 2 CFR §200.328(c) states that "the recipient or subrecipient must submit financial reports as required by the Federal award." Condition: During the audit, we noted that one required report selected for testing was not submitted in accordance with the reporting deadline established in the terms and conditions of the Federal award. Cause: This condition resulted from management oversight related to monitoring and tracking report due dates. Effect or Potential Effect: The failure to submit required reports timely increases the risk of noncompliance with Federal reporting requirements and may result in delayed oversight by the Federal awarding agency, potential sanctions, or increased scrutiny in future monitoring or audits. Questioned Costs: None. Context: 1 of 2 financial reports were not submitted timely. The sample is representative of the population. Identification as a Repeat Finding, if Applicable: 2024-001 Recommendation: We recommend that the Coalition implement formal procedures to ensure timely submission of all required Federal reports. Such procedures may include the use of an automated tracking or calendar system to notify responsible personnel of upcoming reporting deadlines, as well as documented review and approval of reports prior to submission.