Finding Text
2022-003: Noncompliance with Cash Management Department of Labor WIOA Cluster AL #17.258 WIOA Adult Program AL #17.259 WIOA Youth Activities AL #17.278 WIOA Dislocated Worker Formula Grants Department of Treasury AL# 21.019 Coronavirus Relief Fund Condition: Cash draws from WIOA Cluster and Coronavirus Relief Fund grants exceeded the amount needed to cover allowable costs. Criteria: Non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means (2 CFR section 200.305(b)). Cause: Staffing issues resulted in funds being overdrawn and inaccuracies in reconciling the State of Indiana Department of Workforce Development?s system and the general ledger. Effect: Approximately $286,000 of WIOA Cluster funds and $94,000 of Coronavirus Relief Funds were drawn in excess of allowable costs incurred. Recommendation: Management needs to work with the State of Indiana Department of Workforce Development to refund the overdrawn funds or apply the funds to allowable costs in the upcoming fiscal year. Views of Responsible Officials and Planned Corrective Actions: Staffing changes have occurred, and the fiscal management duties have been outsourced to a third party which has experience with Workforce Boards and related grants. The issues are being addressed with IN DWD.