Finding 387044 (2023-007)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-03-28

AI Summary

  • Core Issue: The Board failed to regularly reconcile grant expenditures, leading to improper allocation of expenses among expired and active grants.
  • Impacted Requirements: This finding violates 2 CFR 200.303, which mandates effective internal controls for managing federal awards.
  • Recommended Follow-Up: Implement new policies for timely reconciliations and ensure expenses are charged correctly to the appropriate assistance listing numbers.

Finding Text

2023-007 ALLOCATION OF GRANT EXPENSES (REPEAT OF PRIOR YEAR FINDING 2022-08) 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. Further, it was determined that expenses are being split among expired grants as well as active grants in the client accounting software. Questioned Costs: Unknown Context: Total federal expenditures for the WIOA Cluster were $4,165,604 for the year ended June 30, 2023. Cause: Due to staffing changes during the year, grant expenditures were not regularly reconciled and allocated to the appropriate grant number based on 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.

Corrective Action Plan

2023-007 Allocation of Grant Expenses U.S. Department of Labor Assistance Listing Number 17.258/17.259/17.278 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. Action Taken: The Board has developed a process to correctly allocate expenditures to the correct funding stream. At each month’s end, all employees complete an allocation spreadsheet. When all spreadsheets are completed, approved, and turned in, the Board determines the allocation of payroll and expenditures. Expenditures that occurred in March will be allocated using the allocation chart for February. Also, this procedure is backup for each cash request that is submitted for funding. And, this is reviewed for the reconciliation between the cash request and the Board’s accounting software.

Categories

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

Other Findings in this Audit

  • 387039 2023-002
    Material Weakness Repeat
  • 387040 2023-003
    Material Weakness Repeat
  • 387041 2023-004
    Material Weakness Repeat
  • 387042 2023-005
    Material Weakness Repeat
  • 387043 2023-006
    Material Weakness Repeat
  • 387045 2023-002
    Material Weakness Repeat
  • 387046 2023-003
    Material Weakness Repeat
  • 387047 2023-004
    Material Weakness Repeat
  • 387048 2023-005
    Material Weakness Repeat
  • 387049 2023-006
    Material Weakness Repeat
  • 387050 2023-007
    Material Weakness Repeat
  • 387051 2023-002
    Material Weakness Repeat
  • 387052 2023-003
    Material Weakness Repeat
  • 387053 2023-004
    Material Weakness Repeat
  • 387054 2023-005
    Material Weakness Repeat
  • 387055 2023-006
    Material Weakness Repeat
  • 387056 2023-007
    Material Weakness Repeat
  • 387057 2023-002
    Material Weakness Repeat
  • 387058 2023-003
    Material Weakness Repeat
  • 387059 2023-004
    Material Weakness Repeat
  • 387060 2023-005
    Material Weakness Repeat
  • 387061 2023-006
    Material Weakness Repeat
  • 387062 2023-007
    Material Weakness Repeat
  • 963481 2023-002
    Material Weakness Repeat
  • 963482 2023-003
    Material Weakness Repeat
  • 963483 2023-004
    Material Weakness Repeat
  • 963484 2023-005
    Material Weakness Repeat
  • 963485 2023-006
    Material Weakness Repeat
  • 963486 2023-007
    Material Weakness Repeat
  • 963487 2023-002
    Material Weakness Repeat
  • 963488 2023-003
    Material Weakness Repeat
  • 963489 2023-004
    Material Weakness Repeat
  • 963490 2023-005
    Material Weakness Repeat
  • 963491 2023-006
    Material Weakness Repeat
  • 963492 2023-007
    Material Weakness Repeat
  • 963493 2023-002
    Material Weakness Repeat
  • 963494 2023-003
    Material Weakness Repeat
  • 963495 2023-004
    Material Weakness Repeat
  • 963496 2023-005
    Material Weakness Repeat
  • 963497 2023-006
    Material Weakness Repeat
  • 963498 2023-007
    Material Weakness Repeat
  • 963499 2023-002
    Material Weakness Repeat
  • 963500 2023-003
    Material Weakness Repeat
  • 963501 2023-004
    Material Weakness Repeat
  • 963502 2023-005
    Material Weakness Repeat
  • 963503 2023-006
    Material Weakness Repeat
  • 963504 2023-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
17.258 Wia Adult Program $1.82M
17.259 Wia Youth Activities $1.16M
17.278 Wia Dislocated Worker Formula Grants $1.02M
17.278 Wioa Empowered Employment $166,667
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $7,399