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2022-001 ? Internal Controls over Filing Reports to Grantors (Previously reported as 2021-001) Significant Deficiency Federal Program WIOA Cluster ? Assistance Listing Numbers 17.258, 17.259, 17.278 COVID-19 Employment Recovery National Dislocated Worker Grant ? Assistance Listing Number 17.277 Criteria An effective system of internal controls over compliance is required to ensure that grants are being administered properly. That system includes sufficient review and approval of significant aspects of the grant throughout the life of the grant. Condition During the fiscal year 2021 and 2022 audits, we noted several instances where reports were filed prior to appropriate review and approval. Given that the fiscal year 2021 audit was not issued until late-September 2022, corrective actions were not implemented until after fiscal year end. Cause Due to the lack of timely review and approval, various reports had to be amended and resubmitted to the granting agency, causing delays in the submission of subsequent reports. Effect SDWP could jeopardize future funding due to remittance of incorrect information to grantors. Questioned Costs No questioned costs. Recommendation We recommend SDWP implement a consistent system of review and approval for all reports prior to the submission deadlines. Management?s Response See Corrective Action Plan.