Finding Text
2022-003 Reporting Federal agency: U.S. Department of Labor Federal program title: H1-B Job Training Grants CFDA Number: 17.268 Award Period: March 1, 2020 - February 29, 2024 - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria: Uniform Grant Guidance requires compliance with the provisions of internal controls. 2 CFR Part 200.303 states that recipients of Federal funds are required to establish and maintain effective internal control over the Federal awards to provide reasonable assurance that the recipient of Federal funds is in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Argentum should have internal controls designed and effectively operating to ensure compliance with those provisions. Condition: Argentum was not able to produce audit evidence of the review and approval of its quarterly financial and performance reports. Two out of four quarterly financial reports and four out of four quarterly performance reports did not have adequate evidence to show the reports were reviewed and approved. In addition, two out of the four quarterly filings of financial and performance reports were made after the 45-day required filing period. Questioned Costs: None. Cause: Argentum does not have adequate policies and procedures in place to ensure timely and adequate review and approval of the quarterly financial and performance reports. Effect: The lack of effective internal controls over reporting compliance requirements provides an opportunity for noncompliance. Repeat Finding: Yes Recommendation: We recommend that Argentum update its policies and procedures to ensure adequate review and approval over quarterly financial reports. Procedures must also be implemented to maintain documentation supporting such procedures and submit the required report in timely manner. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.