Finding Text
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.258, 17.259, and 17.278 U.S. Department of Labor - WIOA Cluster Federal Award Identification Number and Year - AA332361955A26 and AA347752055A26 2020, 2021 and 2022 Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - 2 CFR 200.403(g) indicates that costs must be adequately documented in order to be allowable under federal awards. Condition - DESC transferred $70,590 of expenditures to the WIOA cluster from another grant. There was no support to document the rationale for the transfer or to support allowability. Questioned Costs - $70,590 Identification of How Questioned Costs Were Computed - The questioned cost is made up of the total amount that was transferred. Context - There was only one journal entry transferring expenditures from another grant activity into the WIOA cluster. Cause and Effect - The journal entry was made by a departed staff member, and DESC was unable to locate support for the transfer of expenditures to the WIOA grant. Since there is not adequate documentation to support the transfer, there are questioned costs. In addition, the pass-through agency could disallow the unsupported cost and require a return of funds. Recommendation - DESC should ensure there is adequate support for each cost charged to a federal award. Views of Responsible Officials and Corrective Action Plan - DESC has updated fiscal policies and procedures, requiring supporting documentation for all journal entries that has been reviewed with all fiscal staff. Additionally, a review of the supervisor requirements to review the support documentation prior to approval has been completed. Additionally, the Abila MIP financial accounting system has been updated to allow for supporting documentation to be attached to each individual journal entry. Finally, a SharePoint site has been created for all supporting documentation to be stored for access by the appropriate staff members.