Finding Text
Federal Agency: U.S. Department of Labor
Federal Program: Workforce Innovation and Opportunity Act
Federal Assistance Listing Number: 17.258
Pass-Through Agency: MN Department of Employment and Economic Development/South Central
Workforce Council
Pass-Through Number(s): 1075301
Award Period: 12/23/21-3/31/23
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or Specific Requirement: Indirect Costs
Condition: No documentation of approval of indirect cost allocation journal entries.
Questioned Costs: None
Context: During testing of indirect cost allocations, three of seven allocations tested related to the
allocation of payroll for the Workforce Council Executive Director. It was noted the Workforce Council
Executive Director’s timesheet used in the allocation as well as the allocation journal entry was not
approved.
Cause: No journal entry review process for Workforce Council Executive Director payroll allocation.
Effect: Incorrect indirect cost allocation could occur causing noncompliance with program
requirements.
Repeat Finding: No
Recommendation: We recommend that management implements journal entry review process for
Workforce Council Executive Director indirect cost allocations.
Views of responsible officials and planned corrective actions: Management is in agreement with
the finding.