Finding 620324 (2022-001)

Significant Deficiency
Requirement
CL
Questioned Costs
-
Year
2022
Accepted
2023-09-23
Audit: 38665
Organization: Npower Inc. (NY)

AI Summary

  • Core Issue: There is a lack of proper segregation of duties in the preparation and submission of drawdown requests.
  • Impacted Requirements: This affects the internal control over compliance for federal funding programs.
  • Recommended Follow-Up: Implement an internal control process for reviewing drawdown requests to prevent errors.

Finding Text

Finding 2022-001 - Segregation of Duties (Internal Control over Compliance) ALN Nos.: 97.127 - Cybersecurity Education and Training Assistance Program (CETAP) and 21.027 - COVID-19 Coronavirus State and Local Fiscal Recovery Funds Award Year: January 1, 2022 - December 31, 2022 Federal Agencies: United States Department of Homeland Security and United States Department of Treasury Pass Through Entity: Mayor?s Office of Employment Development ? Baltimore for ALN 21.027 Criteria: Management is responsible for controls over review of drawdown requests and reporting. Condition/Context: The individual preparing the drawdown request and reporting is the same individual that submits the documents. Cause: The size of the Organization does not allow for proper segregation of duties for drawdown requests and reporting. Effect: Errors in the drawdown requests and reporting may occur and not be detected within a timely period. Questioned Costs: None. Recommendation: The Organization should develop an internal control process for proper preparation and review of the required drawdown requests and reporting. Views of Responsible Officials: Management agrees with the recommendation and plans to put in place an internal control process.

Categories

Internal Control / Segregation of Duties Cash Management Reporting

Other Findings in this Audit

  • 43881 2022-001
    Significant Deficiency
  • 43882 2022-001
    Significant Deficiency
  • 620323 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
97.127 Cybersecurity Education and Training Assistance Program (cetap) $365,430
21.027 Coronavirus State and Local Fiscal Recovery Funds $317,707
17.207 Employment Service/wagner-Peyser Funded Activities $124,095
17.285 Apprenticeship USA Grants $43,682
17.278 Wioa Dislocated Worker Formula Grants $37,500
17.258 Wioa Adult Program $37,500
17.259 Wioa Youth Activities $37,500