Finding Text
Department of Labor, YouthBuild
Federal Financial Assistance Listing # 17.274, 2020-2023
Compliance Requirement: Reporting
Type of Finding: Material Weakness in Internal Controls Over Compliance and Material Noncompliance
Criteria: Internal control procedures should ensure the required basis of reporting be used for all required reports.
Condition: For one report submission, the balances reported for federal share of expenditures and total administrative expenditures were reported on a cash basis rather than the required accrual basis.
Cause: The Organization has designed internal controls over these areas; however, the controls did not operate as designed.
Effect: The error led to incorrect amounts being reported to the Department of Labor.
Questioned Costs: None reported.
Context/Sampling: A nonstatistical sample of three reports out of eight were selected for testing. One report was prepared using the incorrect basis of accounting.
Repeat Finding from Prior Years: Yes
Recommendation: We recommend the procedures related to reporting be reviewed with applicable program employees to ensure the reports are submitted under the proper accrual basis and the documentation is retained.
Views of Responsible Officials: Management is in agreement with this finding.