Finding Text
Department of Labor, YouthBuild
Federal Financial Assistance Listing # 17.274, 2020-2023
Compliance Requirement: Activities Allowed or Unallowed/Allowable Cost Principles and Period of Performance
Type of Finding: Significant Deficiency in Internal Controls Over Compliance
Criteria: Internal control procedures should ensure invoices are approved prior to payment.
Condition: The Organization has an internal control process designed to approve invoices, but the controls did not operate as designed.
Cause: The controls in place did not operate as designed and failed to detect that eight invoices were paid without approval documented.
Effect: Unallowable expenses could be paid by the program or outside of the period of performance.
Questioned Costs: None reported.
Context/Sampling: A nonstatistical sample of 44 transactions out of 220 total transactions were selected for testing. Eight transactions did not include documentation of approval.
Repeat Finding from Prior Years: Yes
Recommendation: We recommend the procedures related to allowable costs, activities, and period of performance be reviewed with applicable program employees to ensure the control process is properly supported and the documentation is retained.
Views of Responsible Officials: Management is in agreement with this finding.