Finding 498706 (2023-002)

Material Weakness
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2024-09-26
Audit: 321405
Organization: Maine Afl-Cio (ME)
Auditor: Pgm LLC

AI Summary

  • Core Issue: The Organization lacks proper documentation and processes for managing program funds, leading to potential non-compliance.
  • Impacted Requirements: Direct costs and payroll must be allowable, properly documented, and approved, as outlined in the CFDA Compliance Supplement.
  • Recommended Follow-Up: Review and update internal policies on expense allocations and payroll to ensure compliance with grant requirements.

Finding Text

Department Program Name and Agreement Number Peer Navigator - CT 12A 202204 20*2554 Registered Apprenticeship - 20220719*0195 Criteria The Organization is responsible for ensuring direct costs and payroll costs charged to the program are for allowable costs and activities, posted to correct period, proper documentation is retained and expenditures are properly approved. To effectively manage the grant the agency should utilize the compliance supplement. Conditions and Context • No timesheets kept or approved by employee supervisors or management. • One out of 20 disbursements were not allocated correctly all for expenses charged to Peer Navigator contract. • Two out of 20 disbursements were not allocated correctly all for expenses charged to Registered Apprenticeship contract. • Two out of 20 disbursements lacked adequate support for expenses charged to Peer Navigator contract. • Six out of 20 disbursements lacked adequate support for expenses charged to Registered Apprenticeship contract. • Management did not have CFDA numbers during the year to ensure compliance with requirements. Effect The Organization did not have proper documentation or processes in place to ensure funds were spent appropriately. Recommendation We recommended that the Organization review and modify as necessary internal policies and procedures related to expense allocations and payroll to comply with the activities allowed requirements contained in CFDA Compliance Supplement.

Corrective Action Plan

All invoices and expenditures follow procedures outlined in the ME AFL-CIO Financial Management Policies and receive approval prior to payment being issued. All amounts charged to the award reflect amounts in budgets approved in the contract. The Organization is now requesting stipend recipients to sign receipts. Regarding the six out of 20 disbursements lacking adequate support for expenses charged to the Registered Apprenticeship contract, five of these six were individual pre-apprentice participants who were prohibited from completing our financial need pre-screening form and signing it. As an alternative process we interviewed these five individuals and interviewed their pre-release supervisors and confirmed financial need in all five cases. Management will research compliance with CFDA numbers at the beginning of the grant. All grant related expenses match approved expenses in accordance with the contracts and grant guidance. Moving forward, we will implement tracking by class in Quickbooks, more aggressively track time charged to awards, and again review the OMB Compliance Supplements for each award.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 498705 2023-001
    Material Weakness
  • 498707 2023-003
    Material Weakness
  • 498708 2023-004
    Significant Deficiency
  • 498709 2023-005
    Significant Deficiency
  • 498710 2023-001
    Material Weakness
  • 498711 2023-002
    Material Weakness
  • 498712 2023-003
    Material Weakness
  • 498713 2023-001
    Material Weakness
  • 498714 2023-002
    Material Weakness
  • 498715 2023-003
    Material Weakness
  • 498716 2023-001
    Material Weakness
  • 498717 2023-002
    Material Weakness
  • 498718 2023-003
    Material Weakness
  • 498719 2023-004
    Significant Deficiency
  • 1075147 2023-001
    Material Weakness
  • 1075148 2023-002
    Material Weakness
  • 1075149 2023-003
    Material Weakness
  • 1075150 2023-004
    Significant Deficiency
  • 1075151 2023-005
    Significant Deficiency
  • 1075152 2023-001
    Material Weakness
  • 1075153 2023-002
    Material Weakness
  • 1075154 2023-003
    Material Weakness
  • 1075155 2023-001
    Material Weakness
  • 1075156 2023-002
    Material Weakness
  • 1075157 2023-003
    Material Weakness
  • 1075158 2023-001
    Material Weakness
  • 1075159 2023-002
    Material Weakness
  • 1075160 2023-003
    Material Weakness
  • 1075161 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
17.225 Unemployment Insurance $473,972
17.285 Registered Apprenticeship $397,294
21.027 Coronavirus State and Local Fiscal Recovery Funds $60,081