Finding 396130 (2023-001)

SIGNIFICANT DEFICIENCY AND NONCOMPLIANCE 2023-001 ALLOWABLE COSTS Federal Agency: Department of Labor Federal Program: WIOA Adult Programs/WIOA Youth Activities Assistance Listing Number: 17.258/17.259 Federal Award Numbers and Year: CWI 23-001 July 1, 2022 - June 30, 2024 Questioned Costs: None reported Condition: An employee requested expense reimbursement through payroll which was default coded to the grant. The expense was for a different grant and noted as such in the description. The unallowed cost was charged to the incorrect grant and reimbursed by the grantor. Criteria: Expenses charged to the grant must be used to support grant participants and grant activities. The Organization is required to maintain a system of internal controls that ensures only costs incurred on federal grant activities are charged to the federal grant. Cause: The individual responsible for reviewing the grant activity and resulting reimbursement failed to detect that the expense was coded to the incorrect federal grant. Effect: The expense was reimbursed under the wrong federal grant. Identification of Repeat Findings: This is not a repeat finding. Recommendation: Management should implement a review process to ensure payroll reimbursements are accurately allocated to the correct grant for reimbursement. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will conduct training and education with the responsible employees to prevent future errors.