Finding 30452 (2022-002)

Significant Deficiency
Requirement
AB
Questioned Costs
$1
Year
2022
Accepted
2023-09-28

AI Summary

  • Answer: Internal controls are not working properly for allowable/unallowable activities and case file management.
  • Trend: This issue indicates a pattern of ineffective oversight in managing compliance requirements.
  • List: Follow up by reviewing control processes, providing additional training, and implementing regular audits to ensure compliance.

Finding Text

Internal controls were not operating effectively as it relates to activities allowable/unallowable requirements and case file management.

Corrective Action Plan

By way of background, on February 12, 2003, the MO Dept. of Higher Education and Workforce Development's (DHEWD) Office of Workforce Development (OWD) conducted a monitoring review of FWCA based on receipt of a complaint from the funder alleging fraud and information mismanagement. On March 23, 2023, the DHEWD and OWD released its findings report (Report) issuing no finding(s) of fraud against FWCA. The information management issues resulted from the funder restricting FWCA's access to the portal (MoJobs) in which the information is submitted. The DHEWD issued its "final" response to the funder August 2, 2023 and showed there were unresolved issues. In response to the release of the DHEWD's August 2, report, the funder has met with FWCA and requested more time from the DHEWD, to allow the funder to submit a more comprehensive and appropriate response disputing the report's findings and justifying the disallowed costs. As of the time of this writing, those efforts are ongoing. FWCA's Senior Vice President of Operations and Senior Vice President of Compliance have implemented additional policies and procedures to minimized any future information management, programmatic or supportive service issues.

Categories

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.558 Temporary Assistance for Needy Families $1.11M
17.259 Wia Youth Activities $983,937
17.270 Reintegration of Ex-Offenders $919,862
93.086 Healthy Marriage Promotion and Responsible Fatherhood Grants $876,390
17.258 Wia Adult Program $412,147
17.278 Wia Dislocated Worker Formula Grants $399,152
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $363,047
93.575 Child Care and Development Block Grant $236,150
17.277 Workforce Investment Act (wia) National Emergency Grants $104,578
10.558 Child and Adult Care Food Program $37,666