Finding 369395 (2021-006)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2024-02-15
Audit: 290596
Organization: So Consortium (OH)

AI Summary

  • Core Issue: Quarterly financial reports were filed late, and there was a lack of supporting documentation for reported figures.
  • Impacted Requirements: Compliance with 2 CFR § 200.332(a)(3) and Ohio Admin. Code 5101:9-7-29 regarding timely submissions and accurate financial reporting.
  • Recommended Follow-Up: Establish procedures to ensure timely filing of reports and require that all reported data is backed by the fiscal agent's accounting system.

Finding Text

2 CFR § 2900.4 gives regulatory effect to the U.S. Department of Labor for 2 CFR § 200.332(a)(3) which requires a pass-through entity to impose any additional requirements on the subrecipient necessary in order for the pass-through entity to meet its own responsibility to the Federal awarding agency including identification of any required financial and performance reports. Additionally, Ohio Admin. Code 5101:9- 7-29 (D)(2)(c) requires WIOA local areas to submit the completed quarterly financial statement to the Bureau of County Finance and Technical Assistance (BCFTA) no later than the tenth calendar day of the second month following the quarter the report represents. Ohio Admin. Code 5101:9-7-29 further requires the fiscal agent to reconcile any difference between the WIOA local area's financial records and financial data submitted to BCFTA via CFIS. The following issues were noted related to the quarterly submissions: 1. The quarterly financial certification for the fourth quarter of calendar year 2018 was not filed until February 13, 2019, the third quarter of calendar year 2020 was not filed until at least November 17, 2020. Both of these were considered late filings. 2. For all submissions in fiscal years 2019, 2020, and 2021, the fiscal agent was unable to provide system reports from their accounting system that reconciled to the actual financial data (i.e. beginning balances, revenues, expenses, ending balances) submitted to BCFTA via CFIS. Instead, for 2019 and 2020, the fiscal agent provided only manually maintained records of undetailed transactions to support the amounts they reported on the financial reports. Then for 2021, they provided nothing to support what was reported. 3. For all submissions in fiscal years 2019, 2020, and 2021, the fiscal agent was unable to provide any support for the amounts they reported as accruals on the certifications. This could lead to questions regarding accuracy of the amounts reported to Ohio Department of Job and Family Services. The Consortium should implement procedures to ensure quarterly reports are filed no later than the tenth calendar day of the second month following the quarter the report represents. In addition, all data reported thru these quarterly reports should be supported by the accounting system of the Fiscal Agent.

Corrective Action Plan

Planned Corrective Action: The Consortium will implement procedures to ensure quarterly reports are filed no later than the tenth calendar day of the second month following the quarter the report represents. In addition, all data reported thru these quarterly reports will be supported by the accounting system of the Fiscal Agent and County Financial Information System (CFIS). Anticipated Completion Date: March 31, 2024 Responsible Contact Person: Crystal Keaton

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 369391 2021-003
    Material Weakness
  • 369392 2021-003
    Material Weakness
  • 369393 2021-003
    Material Weakness
  • 369394 2021-003
    Material Weakness
  • 369396 2021-006
    Material Weakness
  • 369397 2021-006
    Material Weakness
  • 369398 2021-006
    Material Weakness
  • 369399 2021-004
    Material Weakness
  • 369400 2021-004
    Material Weakness
  • 369401 2021-004
    Material Weakness
  • 369402 2021-005
    Material Weakness
  • 945833 2021-003
    Material Weakness
  • 945834 2021-003
    Material Weakness
  • 945835 2021-003
    Material Weakness
  • 945836 2021-003
    Material Weakness
  • 945837 2021-006
    Material Weakness
  • 945838 2021-006
    Material Weakness
  • 945839 2021-006
    Material Weakness
  • 945840 2021-006
    Material Weakness
  • 945841 2021-004
    Material Weakness
  • 945842 2021-004
    Material Weakness
  • 945843 2021-004
    Material Weakness
  • 945844 2021-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
17.278 Wia Dislocated Worker Formula Grants $1.17M
17.277 Workforce Investment Act (wia) National Emergency Grants $1.09M
17.258 Wia Adult Program $1.09M
17.259 Wia Youth Activities $683,722
17.286 Hurricanes and Wildfires of 2017 Supplemental– National Dislocated Worker Grants $413,812
93.788 Opioid Str $41,897
17.207 Employment Service/wagner-Peyser Funded Activities $34,875
17.225 Unemployment Insurance $9,879
17.245 Trade Adjustment Assistance $6,159