Finding Text
2022-008 ALLOCATION OF GRANT EXPENSES
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).”
Condition: During our testing of WIOA Cluster expenditures, it was noted that the Board did not regularly reconcile expenditures to the appropriate assistance listing numbers within the WIOA Cluster during the year.
Questioned Costs: Unknown
Context: Total federal expenditures for the WIOA Cluster were $3,927,799 for the year ended June 30, 2022.
Cause: The former Fiscal Manager estimated expenses for reimbursement requests and allocated expenses to the grants of the WIOA Cluster Assistance Listing numbers. When the reimbursements were received, the estimated expenses were not reconciled to the actual expenses.
Effect: Expenses were not properly allocated to the correct Assistance Listing number within the WIOA cluster.
Recommendation: We recommend that the Board implement policies and procedures to ensure that all expenses are for actual expenses incurred, and that timely reconciliations are performed to ensure the expenses are properly charged to the correct assistance listing number and grant.
Views of Responsible Officials: We agree with the finding and will take the necessary corrective actions as noted in the corrective action plan attached.