Description of Corrective Action Plan:
Prior to the completion of this audit, EmployIndy already made a number of changes to its financial operations. It parted ways with its Chief Financial Officer and procured the services of an outside Certified Public Accounting firm to begin the process of reviewing and updating its financial operations. In addition, it hired an Executive Vice President of Finance and Operations to lead the final development and implementation of updated financial processes. The Executive Vice President of Finance and Operations has worked with EmployIndy’s Board of Directors and Finance Committee to document a plan for improving EmployIndy’s financial operations across the board by the 2nd quarter of Calendar Year 2024.
As part of the ongoing plan to improve its financial operations, EmployIndy Financial Operations, Grants & Contracts, and Program Management staff will work with WIOA subrecipients to update processes and provide any necessary training for documenting personnel costs that are charged to WIOA funding/cluster. WIOA subrecipients requesting reimbursements for personnel costs will be required to include staff timecards with documentation that shows the specific number of hours of work time charged to each program in the WIOA cluster. EmployIndy staff reviewing monthly invoices or accrued expenditure reports will be retrained on how to properly review subrecipient expenditures and supporting documentation prior to approval.
Further, EmployIndy Financial and Program monitors will specifically review subrecipient time charging and invoicing activity to ensure that personnel costs are not allocated proportionately but based upon actual time worked within each program/cluster. Finally, Financial Operations, Grants & Contracts, and Program Leadership teams will receive further training on Uniform Administrative Requirements for Federal Awards to ensure there is greater understanding of documentation requirements necessary to support federal expenditures.
Responsible Party and Timeline for Completion:
Corrective Activity Responsible Party Timeline for Completion
Develop training for subrecipient and contractor staff time charging and documentation requirements. Associate Director of Grants & Contracts, Controller 1st Quarter of Calendar Year 2024
Develop and provide updated training to EmployIndy Leadership on documentation requirements needed to approve subrecipient or contractor accrued expenditure reports or invoices that contain personnel costs Controller 1st Quarter of Calendar Year 2024
Deliver training to subrecipient and contractor staff time charging, submission, and documentation requirements Vice President of WorkOne, Vice President of Career Connected Learning, Vice President of Community Career Services 2nd Quarter of Calendar Year 2024
Update subrecipient monitoring process to review staff time charging and documentation requirements Associate Director of Grants & Contracts, Associate Director of Performance and Technical Assistance Completed in January 2024
Hold staff and subrecipients accountable for following processes Executive Vice President of Finance and Operations, EmployIndy Leadership Ongoing
Complete training on Uniform Administrative Requirements for Federal Awards Financial Operations, Grants & Contracts, and Program Leadership Teams 1st Quarter of Calendar Year 2024