Finding 387020 (2022-004)

Material Weakness
Requirement
H
Questioned Costs
$1
Year
2022
Accepted
2024-03-28

AI Summary

  • Core Issue: Lack of proper internal controls led to missing documentation and inadequate transaction reviews for federal awards.
  • Impacted Requirements: Non-compliance with 2 CFR 200.303 and 2 CFR 200.309 regarding documentation and allowable costs during the performance period.
  • Recommended Follow-Up: Implement robust internal controls and ensure management reviews all transactions for compliance before payment.

Finding Text

2022-004 PERIOD OF PERFORMANCE Federal Program Information: Federal Agency and Program Name, Federal Assistance Listing Number U.S. Department of Labor, WIOA Cluster 17.258/17.259/17.278 Criteria: 2 CFR 200.303 requires that a non-federal entity must “(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” 2 CFR 200.309 states that “a non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance.” Condition: During our testing of period of performance, it was noted that for 13 of 25 transactions tested, proper supporting documentation could not be provided. Additionally, for 16 of 25 transactions tested, there was no evidence of proper review and approval of the transactions. Questioned Costs: $15,158 – Assistance Listing #17.258/#17.259/#17.278 Context: Total federal expenditures for the WIOA Cluster were $3,927,799 for the year ended June 30, 2022. Cause: The Board did not have proper internal controls in place to ensure that proper supporting documentation was maintained for all transactions, and that all transactions were properly reviewed and approved prior to payment. Effect: The Board could have had expenditures that were outside the proper period of performance of the grant. Recommendation: We recommend that the Board implement internal controls and policies to ensure that supporting documentation is maintained for all transactions, and that a member of management who is knowledgeable of the period of performance is reviewing and approving all transactions prior to payment. Views of Responsible Officials: We agree with the finding and will take the necessary corrective actions as noted in the corrective action plan attached.

Categories

Questioned Costs Allowable Costs / Cost Principles Period of Performance Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 387004 2022-002
    Material Weakness
  • 387005 2022-003
    Material Weakness
  • 387006 2022-004
    Material Weakness
  • 387007 2022-005
    Material Weakness
  • 387008 2022-006
    Material Weakness
  • 387009 2022-007
    Material Weakness
  • 387010 2022-008
    Material Weakness
  • 387011 2022-002
    Material Weakness
  • 387012 2022-003
    Material Weakness
  • 387013 2022-004
    Material Weakness
  • 387014 2022-005
    Material Weakness
  • 387015 2022-006
    Material Weakness
  • 387016 2022-007
    Material Weakness
  • 387017 2022-008
    Material Weakness
  • 387018 2022-002
    Material Weakness
  • 387019 2022-003
    Material Weakness
  • 387021 2022-005
    Material Weakness
  • 387022 2022-006
    Material Weakness
  • 387023 2022-007
    Material Weakness
  • 387024 2022-008
    Material Weakness
  • 387025 2022-002
    Material Weakness
  • 387026 2022-003
    Material Weakness
  • 387027 2022-004
    Material Weakness
  • 387028 2022-005
    Material Weakness
  • 387029 2022-006
    Material Weakness
  • 387030 2022-007
    Material Weakness
  • 387031 2022-008
    Material Weakness
  • 387032 2022-002
    Material Weakness
  • 387033 2022-003
    Material Weakness
  • 387034 2022-004
    Material Weakness
  • 387035 2022-005
    Material Weakness
  • 387036 2022-006
    Material Weakness
  • 387037 2022-007
    Material Weakness
  • 387038 2022-008
    Material Weakness
  • 963446 2022-002
    Material Weakness
  • 963447 2022-003
    Material Weakness
  • 963448 2022-004
    Material Weakness
  • 963449 2022-005
    Material Weakness
  • 963450 2022-006
    Material Weakness
  • 963451 2022-007
    Material Weakness
  • 963452 2022-008
    Material Weakness
  • 963453 2022-002
    Material Weakness
  • 963454 2022-003
    Material Weakness
  • 963455 2022-004
    Material Weakness
  • 963456 2022-005
    Material Weakness
  • 963457 2022-006
    Material Weakness
  • 963458 2022-007
    Material Weakness
  • 963459 2022-008
    Material Weakness
  • 963460 2022-002
    Material Weakness
  • 963461 2022-003
    Material Weakness
  • 963462 2022-004
    Material Weakness
  • 963463 2022-005
    Material Weakness
  • 963464 2022-006
    Material Weakness
  • 963465 2022-007
    Material Weakness
  • 963466 2022-008
    Material Weakness
  • 963467 2022-002
    Material Weakness
  • 963468 2022-003
    Material Weakness
  • 963469 2022-004
    Material Weakness
  • 963470 2022-005
    Material Weakness
  • 963471 2022-006
    Material Weakness
  • 963472 2022-007
    Material Weakness
  • 963473 2022-008
    Material Weakness
  • 963474 2022-002
    Material Weakness
  • 963475 2022-003
    Material Weakness
  • 963476 2022-004
    Material Weakness
  • 963477 2022-005
    Material Weakness
  • 963478 2022-006
    Material Weakness
  • 963479 2022-007
    Material Weakness
  • 963480 2022-008
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
17.258 Wia Adult Program $1.52M
17.259 Wia Youth Activities $1.25M
17.278 Wia Dislocated Worker Formula Grants $674,631
17.278 Wioa Empowered Employment $461,769
17.278 Wioa State Set Aside $20,534
10.561 Supplemental Nutrition Assistance Program $11,711