Corrective Action Plan
Seattle Jobs Initiative
Report Period: YE 2023
Date: 09/30/2024
Auditor Findings: A significant deficiency was identified in internal controls related to the allocation of indirect costs for federal awards. Specifically, the timely documentation and review of indirect cost allocation methods were not adequately maintained.
Corrective Action Plan:
1. Finding:
o Description: A deficiency related to internal controls over the allocation of indirect costs for federal awards. The review process for the documentation of indirect costs was not timely, leading to potential discrepancies in allocation.
2. Cause:
o Lack of timely documentation and review of indirect cost allocation methods.
3. Corrective Action:
o Enhance Internal Control Procedures: Seattle Jobs Initiative will revise the internal control procedures surrounding the allocation of indirect costs. This will involve:
Establishing a structured timeline for regular and timely documentation of indirect cost allocations.
Implementing a quarterly review process by a designated financial manager to ensure compliance and accuracy in cost allocation.
Providing training to finance staff on the updated procedures and documentation requirements to ensure clarity and consistency in the process.
o Documentation Improvements: All indirect cost allocation documentation will be maintained in a centralized system to ensure that all records are up to date, easily accessible, and subject to regular review.
o Review and Approval: A secondary review process will be implemented, where the VP of Finance or another designated individual reviews and approves the allocation methodology before submission to external stakeholders or auditors.
4. Responsible Personnel:
o VP of Finance: Karthik Mohan
o Accounts Receivable Accountant: Oka Kencanawati
5. Implementation Timeline:
o November 1, 2024: Initial training for finance staff on revised internal controls and allocation methods.
o November 15, 2024: Completion of the first quarterly review of indirect cost allocations under the new control procedures.
o December 1, 2024: Full implementation of the updated documentation and review system for ongoing compliance.
6. Monitoring and Reporting:
o The Finance team will monitor the effectiveness of the corrective actions through quarterly internal audits, ensuring the controls are being followed and addressing any further issues promptly. The findings from these audits will be reported to the executive team for review.
Conclusion:
Seattle Jobs Initiative is committed to resolving this significant deficiency and enhancing our internal control processes to prevent future occurrences. We expect full resolution of the issue by the end of 2024, with no further noncompliance anticipated moving forward.
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Submitted by:
Karthik Mohan
VP of Finance
Seattle Jobs Initiative
09/30/2024