Finding 29408 (2022-003)

Material Weakness
Requirement
AB
Questioned Costs
$1
Year
2022
Accepted
2023-03-30

AI Summary

  • Core Issue: DESC transferred $70,590 to the WIOA cluster without proper documentation, leading to questioned costs.
  • Impacted Requirements: This finding violates 2 CFR 200.403(g), which mandates adequate documentation for allowable costs under federal awards.
  • Recommended Follow-Up: DESC should maintain thorough support for all federal award costs and has updated policies to ensure documentation is attached to journal entries.

Finding Text

Assistance Listing Number, Federal Agency, and Program Name - ALN 17.258, 17.259, and 17.278 U.S. Department of Labor - WIOA Cluster Federal Award Identification Number and Year - AA332361955A26 and AA347752055A26 2020, 2021 and 2022 Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - 2 CFR 200.403(g) indicates that costs must be adequately documented in order to be allowable under federal awards. Condition - DESC transferred $70,590 of expenditures to the WIOA cluster from another grant. There was no support to document the rationale for the transfer or to support allowability. Questioned Costs - $70,590 Identification of How Questioned Costs Were Computed - The questioned cost is made up of the total amount that was transferred. Context - There was only one journal entry transferring expenditures from another grant activity into the WIOA cluster. Cause and Effect - The journal entry was made by a departed staff member, and DESC was unable to locate support for the transfer of expenditures to the WIOA grant. Since there is not adequate documentation to support the transfer, there are questioned costs. In addition, the pass-through agency could disallow the unsupported cost and require a return of funds. Recommendation - DESC should ensure there is adequate support for each cost charged to a federal award. Views of Responsible Officials and Corrective Action Plan - DESC has updated fiscal policies and procedures, requiring supporting documentation for all journal entries that has been reviewed with all fiscal staff. Additionally, a review of the supervisor requirements to review the support documentation prior to approval has been completed. Additionally, the Abila MIP financial accounting system has been updated to allow for supporting documentation to be attached to each individual journal entry. Finally, a SharePoint site has been created for all supporting documentation to be stored for access by the appropriate staff members.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 29365 2022-002
    Significant Deficiency
  • 29366 2022-005
    Significant Deficiency
  • 29367 2022-002
    Significant Deficiency
  • 29368 2022-005
    Significant Deficiency
  • 29369 2022-002
    Significant Deficiency
  • 29370 2022-005
    Significant Deficiency
  • 29371 2022-003
    Material Weakness
  • 29372 2022-005
    Significant Deficiency
  • 29373 2022-003
    Material Weakness
  • 29374 2022-005
    Significant Deficiency
  • 29375 2022-004
    Significant Deficiency
  • 29376 2022-005
    Significant Deficiency
  • 29377 2022-002
    Significant Deficiency
  • 29378 2022-003
    Material Weakness
  • 29379 2022-005
    Significant Deficiency
  • 29380 2022-003
    Material Weakness
  • 29381 2022-005
    Significant Deficiency
  • 29382 2022-003
    Material Weakness
  • 29383 2022-005
    Significant Deficiency
  • 29384 2022-003
    Material Weakness
  • 29385 2022-005
    Significant Deficiency
  • 29386 2022-003
    Material Weakness
  • 29387 2022-005
    Significant Deficiency
  • 29388 2022-003
    Material Weakness
  • 29389 2022-005
    Significant Deficiency
  • 29390 2022-003
    Material Weakness
  • 29391 2022-005
    Significant Deficiency
  • 29392 2022-005
    Significant Deficiency
  • 29393 2022-003
    Material Weakness
  • 29394 2022-005
    Significant Deficiency
  • 29395 2022-003
    Material Weakness
  • 29396 2022-005
    Significant Deficiency
  • 29397 2022-004
    Significant Deficiency
  • 29398 2022-005
    Significant Deficiency
  • 29399 2022-003
    Material Weakness
  • 29400 2022-005
    Significant Deficiency
  • 29401 2022-003
    Material Weakness
  • 29402 2022-005
    Significant Deficiency
  • 29403 2022-005
    Significant Deficiency
  • 29404 2022-003
    Material Weakness
  • 29405 2022-005
    Significant Deficiency
  • 29406 2022-003
    Material Weakness
  • 29407 2022-005
    Significant Deficiency
  • 29409 2022-005
    Significant Deficiency
  • 29410 2022-003
    Material Weakness
  • 29411 2022-005
    Significant Deficiency
  • 29412 2022-003
    Material Weakness
  • 29413 2022-005
    Significant Deficiency
  • 29414 2022-003
    Material Weakness
  • 29415 2022-005
    Significant Deficiency
  • 29416 2022-005
    Significant Deficiency
  • 29417 2022-003
    Material Weakness
  • 29418 2022-005
    Significant Deficiency
  • 29419 2022-003
    Material Weakness
  • 29420 2022-005
    Significant Deficiency
  • 29421 2022-004
    Significant Deficiency
  • 29422 2022-005
    Significant Deficiency
  • 29423 2022-003
    Material Weakness
  • 29874 2022-005
    Significant Deficiency
  • 29875 2022-005
    Significant Deficiency
  • 29876 2022-003
    Material Weakness
  • 29877 2022-005
    Significant Deficiency
  • 29878 2022-003
    Material Weakness
  • 29879 2022-005
    Significant Deficiency
  • 29880 2022-003
    Material Weakness
  • 29881 2022-005
    Significant Deficiency
  • 29882 2022-003
    Material Weakness
  • 29883 2022-005
    Significant Deficiency
  • 29884 2022-003
    Material Weakness
  • 29885 2022-005
    Significant Deficiency
  • 29886 2022-003
    Material Weakness
  • 29887 2022-005
    Significant Deficiency
  • 29888 2022-005
    Significant Deficiency
  • 29889 2022-003
    Material Weakness
  • 29890 2022-005
    Significant Deficiency
  • 29891 2022-005
    Significant Deficiency
  • 29892 2022-005
    Significant Deficiency
  • 605807 2022-002
    Significant Deficiency
  • 605808 2022-005
    Significant Deficiency
  • 605809 2022-002
    Significant Deficiency
  • 605810 2022-005
    Significant Deficiency
  • 605811 2022-002
    Significant Deficiency
  • 605812 2022-005
    Significant Deficiency
  • 605813 2022-003
    Material Weakness
  • 605814 2022-005
    Significant Deficiency
  • 605815 2022-003
    Material Weakness
  • 605816 2022-005
    Significant Deficiency
  • 605817 2022-004
    Significant Deficiency
  • 605818 2022-005
    Significant Deficiency
  • 605819 2022-002
    Significant Deficiency
  • 605820 2022-003
    Material Weakness
  • 605821 2022-005
    Significant Deficiency
  • 605822 2022-003
    Material Weakness
  • 605823 2022-005
    Significant Deficiency
  • 605824 2022-003
    Material Weakness
  • 605825 2022-005
    Significant Deficiency
  • 605826 2022-003
    Material Weakness
  • 605827 2022-005
    Significant Deficiency
  • 605828 2022-003
    Material Weakness
  • 605829 2022-005
    Significant Deficiency
  • 605830 2022-003
    Material Weakness
  • 605831 2022-005
    Significant Deficiency
  • 605832 2022-003
    Material Weakness
  • 605833 2022-005
    Significant Deficiency
  • 605834 2022-005
    Significant Deficiency
  • 605835 2022-003
    Material Weakness
  • 605836 2022-005
    Significant Deficiency
  • 605837 2022-003
    Material Weakness
  • 605838 2022-005
    Significant Deficiency
  • 605839 2022-004
    Significant Deficiency
  • 605840 2022-005
    Significant Deficiency
  • 605841 2022-003
    Material Weakness
  • 605842 2022-005
    Significant Deficiency
  • 605843 2022-003
    Material Weakness
  • 605844 2022-005
    Significant Deficiency
  • 605845 2022-005
    Significant Deficiency
  • 605846 2022-003
    Material Weakness
  • 605847 2022-005
    Significant Deficiency
  • 605848 2022-003
    Material Weakness
  • 605849 2022-005
    Significant Deficiency
  • 605850 2022-003
    Material Weakness
  • 605851 2022-005
    Significant Deficiency
  • 605852 2022-003
    Material Weakness
  • 605853 2022-005
    Significant Deficiency
  • 605854 2022-003
    Material Weakness
  • 605855 2022-005
    Significant Deficiency
  • 605856 2022-003
    Material Weakness
  • 605857 2022-005
    Significant Deficiency
  • 605858 2022-005
    Significant Deficiency
  • 605859 2022-003
    Material Weakness
  • 605860 2022-005
    Significant Deficiency
  • 605861 2022-003
    Material Weakness
  • 605862 2022-005
    Significant Deficiency
  • 605863 2022-004
    Significant Deficiency
  • 605864 2022-005
    Significant Deficiency
  • 605865 2022-003
    Material Weakness
  • 606316 2022-005
    Significant Deficiency
  • 606317 2022-005
    Significant Deficiency
  • 606318 2022-003
    Material Weakness
  • 606319 2022-005
    Significant Deficiency
  • 606320 2022-003
    Material Weakness
  • 606321 2022-005
    Significant Deficiency
  • 606322 2022-003
    Material Weakness
  • 606323 2022-005
    Significant Deficiency
  • 606324 2022-003
    Material Weakness
  • 606325 2022-005
    Significant Deficiency
  • 606326 2022-003
    Material Weakness
  • 606327 2022-005
    Significant Deficiency
  • 606328 2022-003
    Material Weakness
  • 606329 2022-005
    Significant Deficiency
  • 606330 2022-005
    Significant Deficiency
  • 606331 2022-003
    Material Weakness
  • 606332 2022-005
    Significant Deficiency
  • 606333 2022-005
    Significant Deficiency
  • 606334 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.558 Temporary Assistance for Needy Families $12.18M
17.245 Trade Adjustment Assistance $348,406
17.268 H-1b Job Training Grants $287,538
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $261,096
17.277 Workforce Investment Act (wia) National Emergency Grants $174,574
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $165,397
17.259 Wia Youth Activities $164,548
17.258 Wia Adult Program $154,529
17.207 Employment Service/wagner-Peyser Funded Activities $146,483
17.278 Wia Dislocated Worker Formula Grants $118,120
14.218 Community Development Block Grants/entitlement Grants $44,268
17.801 Jobs for Veterans State Grants $3,226
17.225 Unemployment Insurance $1,032
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $494
17.274 Youthbuild $-2,202