Finding 1208588 (2024-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-04-23

AI Summary

  • Core Issue: The entity failed to report subawards for WIOA and submitted ARPA reports late.
  • Impacted Requirements: WIOA requires reporting of subawards over $50,000 by the end of the following month; ARPA mandates monthly reports by the 15th.
  • Recommended Follow-Up: Implement a tracking system to ensure timely reporting of all required documents.

Finding Text

Federal Program WIOA Cluster – Assistance Listing Number 17.258, 17.259, 17.278 American Rescue Plan Act (ARPA) – Assistance Listing Number 21.027 Criteria WIOA: The requirements of 2 CFR Part 170 Appendix A states that direct recipients of grants or cooperative agreements are required to report first-tier subawards of $50,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Report System (FSRS) by the end of the following month in which the direct recipient awards such subawards.Part 3 of the compliance supplement requires this reporting at $30,000. ARPA: The grant agreement with the pass-through agency states that monthly reports must be submitted to the agency by the 15th day following the end of each month. Condition WIOA: During the audit, we noted reporting of subaward information to FSRS was not performed. ARPA: During the audit, we noted several monthly reports were sent to the granting agency after the deadline. Cause The entity did not have sufficient controls in place to ensure reporting was completed in the required timeframe. Effect The entity could jeopardize future grant funding due to program noncompliance. Questioned Costs No questioned costs. Recommendation We recommend the entity implement a tracking system to remind staff of the various reports due and respective deadlines. Context/Sampling WIOA: During the audit, auditor requested a sample of required FSRS reporting for three subrecipients and was unable to obtain the required reporting. ARPA: During the audit, we evaluated a haphazardly selected sample of 4 monthly reports. Three of these reports were found to have been sent to the granting agency after the deadline.

Corrective Action Plan

Effective March 1, 2026, the San Diego Workforce Partnership will incorporate the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS) reporting deadline into the Month‑End Schedule. The activities outlined in this schedule help ensure that all required financial data is captured, reviewed, and reported in a timely and complete manner. The Accounting Manager will oversee the operational steps required to meet FSRS reporting deadlines, while the Chief Financial Officer (CFO) will provide overall oversight to ensure that these procedures are consistently followed and that internal control expectations are met. Effective March 1, 2026, to address the delay in submission of monthly reports for the ARPA grant to the pass-through agency, the San Diego Workforce Partnership is implementing strengthened internal controls and workflow procedures to ensure all required reports are submitted by the 15th day following the end of each month, as stipulated in the grant agreement.

Categories

Subrecipient Monitoring HUD Housing Programs Reporting

Other Findings in this Audit

  • 1208585 2024-002
    Material Weakness Repeat
  • 1208586 2024-002
    Material Weakness Repeat
  • 1208587 2024-002
    Material Weakness Repeat
  • 1208589 2024-003
    Material Weakness Repeat
  • 1208590 2024-003
    Material Weakness Repeat
  • 1208591 2024-003
    Material Weakness Repeat
  • 1208592 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
17.278 WIOA DISLOCATED WORKER FORMULA GRANTS $8.29M
17.258 WIOA ADULT PROGRAM $6.61M
17.259 WIOA YOUTH ACTIVITIES $5.94M
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $2.34M
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $2.25M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.46M
84.126 REHABILITATION SERVICES VOCATIONAL REHABILITATION GRANTS TO STATES $168,017
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $91,807
93.516 PUBLIC HEALTH TRAINING CENTERS PROGRAM $20,214
17.277 WIOA NATIONAL DISLOCATED WORKER GRANTS / WIA NATIONAL EMERGENCY GRANTS $114