Finding Text
2022-006: U.S. Department of Labor, Nevadaworks, WIOA Cluster: 17.259 WIA Youth Activities, 17.278 WIOA Dislocated Worker Formula Grants and 17.258 WIA Adult Program Grants U.S. Department of Justice, State of Nevada Division of Child and Family Services 16.575 Crime Victim Assistance Allowable Costs/Costs Principles Significant Deficiency in Internal Control Over Compliance Grant Award Number: Affects all grants awards included under the WIOA cluster including CFDA 17.259, 17.278 and 17.258 and Crime Victim Assistance CFDA 16.575. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) provides that amounts charged to Federal programs must be for allowable costs. To be allowable under Federal awards, costs must be adequately documented and supported. Condition: Community Chest, Inc. does have an internal control system to properly differentiate between federal and non-federal expenditures, however certain immaterial amounts were not properly classified within the system in accordance with their internal control system. Cause: Community Chest, Inc. did not have adequate internal controls to ensure each federal grant was properly closed out within the accounting system. Effect: The Organization could incorrectly report federal expenditures on the schedule of federal expenditures. Questioned Costs: None reported. Context/sampling: A nonstatistical sample was not utilized, the federal expenditures reimbursed were compared to total expenditures classified to the grant within the accounting system. Report Finding from Prior Year(s): No. Recommendation: We recommend Community Chest, Inc. enhance the internal controls over grant close out within the accounting system. Views of Responsible Officials: Community Chest, Inc. agrees with this finding; see corrective action plan.