Finding Text
Information on the federal program:
Federal Agency: Department of Labor
Pass-Through Entity: Indiana Department of Workforce Development
Federal Program: WIOA
Assistance Listing Number: 17.258, 17.259, 17.278
Compliance Requirement: Subrecipient Monitoring
Audit Findings: Material Weakness, Noncompliance
Criteria: Title 2 Subtitle A Chapter II Part 200 Subpart D, Section 200.331 and 200.332, establishes requirements that pass-through entities must adhere to in regard to their subrecipient grant agreements and the monitoring processes of those subrecipients.
Condition: The EmployIndy subrecipient, Eckerd Connects, was reimbursed for personnel and fringe expenses that were allocated to the WIOA grants based off of a fixed allocation percentage for each ALN instead of actual time on task.
Cause: The condition was caused by a lack of internal controls over WIOA subrecipient/service provider claims for accrued expenditures.
Effect: As a result of these matters, expenditures could be inaccurately charged to the federal grant.
Questioned costs: There are no questioned costs.
Context: During testing, Crowe identified multiple monthly accrued expenditures of the Eckerd Connects subrecipient in which a fixed allocation for the separate WIOA grants was used each month to allocate personnel and fringe expenses.
Identification as a repeat finding, if applicable: Not applicable. This is not a repeat finding.
Recommendation: We recommend EmployIndy review subrecipient source documents to ensure accrued expenditures are appropriately supported by invoices or time-records showing time on task spent on specific grants.
Views of responsible officials and planned corrective actions: Management acknowledges the finding. See management’s corrective action plan attached to this audit report.