Finding Text
2023-004 WIOA Cluster – Subrecipient Financial Monitoring (New comment)
Criteria: During our audit, we noted that subrecipient financial monitoring was not completed during the year ended June 30, 2023, for all subrecipients of the WIOA Cluster. Additionally, two subrecipients did not have required audits completed in either FY22 or FY23.
Condition and Context: Per compliance requirements of the grant program, subrecipient financial monitoring is required to be completed each year.
Cause: Due to the continued transition between personnel in the current fiscal year, subrecipient financial monitoring reports were not completed for the WIOA Cluster during the year ended June 30, 2023.
Effect: Insufficient internal controls over the completion of subrecipient financial monitoring requirements and noncompliance with grant requirements.
Recommendation: We recommend subrecipient financial monitoring is completed for all subrecipients to meet grant compliance requirements, we recommend verifying that subrecipients have all required audits completed, and we recommend implementing additional internal controls over this area to avoid similar occurrences going forward.