Finding Text
Finding 2023-005
Instance of noncompliance and significant deficiency in internal controls over eligibility.
Federal Agency: Department of Labor
Program Title: WIOA Cluster
Assistance Listing Number: 17.259, 17.258
Award Numbers: 22-111-ISY, 22-115-ADU
Award Periods: July 1, 2022 through June 30, 2023
Criteria
Per the standards contained in Title 2 US Code of Federal Regulations Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards, Subpart D ‐ Post Federal Award Requirements, Section 200.303, non‐federal entities are required to establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.
The Federal award referenced requires that eligible beneficiaries be in-school, or out-of-school youth (Section 129(a)(1), WIOA, 128 Stat. 1504).
Condition/Context for Evaluation
During the year ended June 30, 2023, out of a sample of five beneficiaries, one selection did not have a supporting self-attestation and Youth Program Eligibility Criteria checklist form completed supporting that the beneficiary was in-school, or out-of-school youth and went through the eligibility verification process. The Organization had retained the individuals transcript supporting the compliance requirements that the youth was attending school and between the age of 14 and 21.
Effect or Potential Effect
Beneficiaries served by the Organization may not be eligible to participate in the program.
Questioned Costs
Not applicable.
Cause
The Organization’s internal controls did not ensure that documentation was retained to support the complete eligibility determination of all individuals participating in the program.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend that the Organization implement the necessary internal controls to ensure that documentation is retained to support the eligibility of all beneficiaries served.
Views of Responsible Officials of Auditee
Management agrees with the finding and has provided the accompanying corrective action plan.