Finding Text
Finding 2022-002 ? Reporting Federal Agency: U.S. Department of Labor Employment and Training Administration Federal program title: YouthBuild Assistance Listing Number: 17.274 Award Period: 01/01/2020 ? 03/31/2023 Type of Finding: Compliance and material weakness in internal control over compliance Criteria: According to grant document and the Department of Labor reporting guidelines, the quarterly financial reports, form ETA-9130 are to be submitted 45 calendar days after the quarter end and certified by an authorized certifying official. Condition: The Organization?s ETA-9130 were submitted through the on-line portal, however, the certifying official was a member of management who had left the Organization prior to 2022. Context: This condition occurred in all quarterly reports submitted during 2022. Cause: As noted in the Financial Reporting Resources provided by the Department of Labor, states that Grant recipients that will be submitting/certifying ETA-9130 financial reports on behalf of their organization, should log in to the on-line portal (Payment Management System) and update the permissions to request access to the ETA-9130 financial reporting form. In addition, we noted the individual submitting the report, gathers the information, completes the ETA-9130 and submits for filing. There is no review completed of the ETA-9130 by any other individual before submission. Effect: Improper information could be submitted to the federal agency. The certifying official, is certifying that the report is true, complete and accurate and in accordance with U.S. Code Title 18, Section 1001 and Title 31, Sections 3729-3730 and 3801-3812. As the individual was not with the Organization at the time the reports were submitted, there is not proper representation from the Organization on compliance.Recommendation: Management should develop a process of internal controls over submission of the ETA-9130. We recommend a review of the financial reports by a member of management before submission. We also recommend the Organization review its permissions in the Payment Management System to ensure the proper individual have access and permissions to submit reports.