Finding Text
Department of Labor, YouthBuild
Federal Financial Assistance Listing # 17.274, 2020-2023
Compliance Requirement: Eligibility
Type of Finding: Significant Deficiency in Internal Controls Over Compliance
Criteria: Internal control procedures should be in place to ensure that participants meet the eligibility requirements for the program.
Condition: The Organization has an internal control process which requires eligibility forms to be reviewed and signed, but the controls did not operate as designed.
Cause: The controls in place did not operate as designed and failed to detect that the eligibility documentation was not signed by the Organization.
Effect: Ineligible individuals could be participating in the program.
Questioned Costs: None reported.
Context/Sampling: A nonstatistical sample of 17 participants out of 85 were selected for testing. One participant had an eligibility form that was not signed by the Organization.
Repeat Finding from Prior Years: Yes
Recommendation: We recommend management revise their internal controls to make sure the participant forms are reviewed and signed by the Organization.
Views of Responsible Officials: Management is in agreement with this finding.