Finding 948724 (2021-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2024-03-05

AI Summary

  • Core Issue: The internal control system for performance reporting was ineffective, with 13 out of 16 client checklists missing.
  • Impacted Requirements: Failure to maintain quality control checklists risks non-compliance with federal reporting metrics, violating grant agreements.
  • Recommended Follow-Up: Management should ensure the quality control checklist is consistently reviewed and maintained for all clients, as per the new standard operating procedure.

Finding Text

U.S. Department of Labor, WIOA Adult Program, Assistance Listing Number 17.258, Passed Through Workforce Connections, Internal Control over Reporting Criteria: The auditee is required to maintain a system of internal control to provide reasonable assurance that federal reporting requirements are in compliance with the terms and conditions of the federal awards. Condition: A quality control checklist is maintained for each client. The checklist ensures that the Organization’s staff reviews the required documents, and the client information is entered into the EmployNV system, which provides the metrics for the required performance reporting. Out of 16 test selections, there was no quality control checklist for 13 test selections. Cause: The internal control system over the performance reporting was not operating effectively. The quality control checklist was either not completed or not maintained. Effect: Not completing or maintaining the quality control checklist increases the risk that a client’s information was not entered into the EmployNV system. This would result in the required reporting metrics not being submitted, which would be a violation of the grant agreement. Recommendation: We recommend management design and implement a system of internal controls whereby the quality control checklist is reviewed and maintained for each client in the program. U.S. Department of Labor, WIOA Adult Program, Assitance Living Number 17.258, Passed Through Workforce Connections, Internal Control over Reporting. Views of Responsible Officials: Managment has since created a standard operating procedure that requires program personnel to property complete and document quality control reviews over client files. Hope for Prisoners performs client file quality control reviews through a peer-to-peer review process performed by career coaches as well as through a review by the Organization's Program Support Specialist. The Program Support Specialist's main job function is the performance of quality control reviews of all client files. Both of these reviews ensure that quality checklists are being properly completed and maintained in all client files.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 372281 2021-003
    Material Weakness
  • 372282 2021-002
    Material Weakness
  • 948723 2021-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
17.258 Wia Adult Program $408,222
16.812 Second Chance Act Reentry Initiative $338,893
17.277 Workforce Investment Act (wia) National Emergency Grants $108,902
16.738 Edward Byrne Memorial Justice Assistance Grant Program $56,417