Finding 403902 (2022-002)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2024-06-28

AI Summary

  • Core Issue: AJAC lacks proper internal control policies, leading to potential inaccuracies in financial reporting.
  • Impacted Requirements: Key areas affected include records management, personnel policies, financial reporting, cash management, cost allocation, and audit systems.
  • Recommended Follow-Up: Management should regularly review and monitor internal controls to ensure compliance with COSO standards.

Finding Text

Internal Control Policies and Procedures. Condition and Context: AJAC did not have appropriate internal control policies and procedures to ensure accurate financial reporting, including in the areas of: 1) records management, 2) personnel policies, 3) financial reporting, 4) cash management, 5) cost allocation, and 6) formal audit and audit resolution systems. Effect or potential effect: Inaccuracies and delays in reporting of accounting information. Cause: Lack of appropriate cost allocation policies and procedures. Criteria: The Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Framework (Internal Control Framework) states management is responsible for maintaining and following appropriate policies and procedures to ensure accurate financial reporting. Recommendations: We recommend management review AJAC's current policies and procedures to ensure accurate financial reporting. We recommend that management provide regular monitoring and oversight of the internal control policies and procedures of the organization. Responsible official's response: Internal control policies and procedures were updated in order to address this finding. All financial reporting policies and procedures will be reviewed and updated on an annual basis by AJAC Directors and Supervisors.

Corrective Action Plan

Corrective Action Plan: The deficiencies related to internal control policies and procedures were initially identified in a Federal Desk Monitoring Review conducted in November 2022. Internal control policies and procedures were updated in response to these findings and approved by DOL on October 26, 2023. All financial reporting policies and procedures will be reviewed and updated on an annual basis by AJAC Directors and Supervisors. Anticipated Completion Date: Completed

Categories

Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management Reporting

Other Findings in this Audit

  • 403901 2022-001
    Material Weakness
  • 403903 2022-003
    Material Weakness
  • 403904 2022-004
    Material Weakness
  • 403905 2022-005
    Material Weakness
  • 403906 2022-006
    Material Weakness
  • 403907 2022-007
    Material Weakness
  • 403908 2022-008
    Material Weakness
  • 403909 2022-009
    Material Weakness
  • 980343 2022-001
    Material Weakness
  • 980344 2022-002
    Material Weakness
  • 980345 2022-003
    Material Weakness
  • 980346 2022-004
    Material Weakness
  • 980347 2022-005
    Material Weakness
  • 980348 2022-006
    Material Weakness
  • 980349 2022-007
    Material Weakness
  • 980350 2022-008
    Material Weakness
  • 980351 2022-009
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
17.268 H-1b Job Training Grants $516,815
17.258 Wia Adult Program $147,975
17.701 Women in Apprenticeship and Nontraditional Occupations (“wanto”) Technical Assistance Grant Program (b) $49,956
17.285 Apprenticeship USA Grants $15,000