FAC Explorer

Finding 968207 (2022-004)

Significant Deficiency Repeat Finding
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2024-04-01
Audit: 302122
Organization: Michigan Works! Southeast Consortium (MI)
Auditor: Roslund Prestage & Company PC

AI Summary

  • Core Issue: There is a significant deficiency in how non-direct charged wage time is allocated, leading to incorrect program charges.
  • Impacted Requirements: Costs may be deemed unallowable if not allocated according to actual employee time spent, violating 2 CFR 200.405.
  • Recommended Follow-Up: Implement new policies to ensure labor allocations accurately reflect employee time usage.

Finding Text

2022-004: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs (repeat comment) Federal Program: WIOA Cluster (ALN 17.258/17.259/17.278), Employment Services Cluster (ALN 17.207/17.801), and Temporary Assistance for Needy Families Cluster (ALN 93.558) Criteria: Per 2 CFR 200.405, Allocable costs (a) states “a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received.” Condition: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Context: Allocations of non-direct charged wage time (i.e., paid time off, bereavement, jury duty, holiday, medical paid time off, medical waivers) are managed through a labor allocation which is completed by the accounting staff and communicated to the payroll company. This labor allocation is designed to spread the non-direct charged wage time to the same programs that the employee directly charges time. When an employee changes programs to which their time is directly charged the accounting staff is not notified by the staff but notes the change after the fact during reviews of payroll records. Once the change is noted, a new labor allocation is created and communicated to the payroll company which creates a lag in time whereby amounts of non-direct charged wage time are charged to various programs incorrectly. Cause: Limitation of current system being utilized to allocate payroll costs. Effect: Costs charged to the program may be considered unallowable if not allocated in a manner consistent with where the employee actually spends their time. Recommendation: The Consortium should adopt policies and procedures that require that allocations for labor to align with how the employee actually spends their time. Views of Responsible Officials: We agree with the finding. We have addressed the issues within the Consortium to properly allocate non-direct wage time.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 391715 2022-004
    Significant Deficiency Repeat
  • 391716 2022-004
    Significant Deficiency Repeat
  • 391717 2022-004
    Significant Deficiency Repeat
  • 391718 2022-004
    Significant Deficiency Repeat
  • 391719 2022-004
    Significant Deficiency Repeat
  • 391720 2022-004
    Significant Deficiency Repeat
  • 391721 2022-004
    Significant Deficiency Repeat
  • 391722 2022-005
    Significant Deficiency
  • 391723 2022-005
    Significant Deficiency
  • 391724 2022-005
    Significant Deficiency
  • 391725 2022-005
    Significant Deficiency
  • 391726 2022-005
    Significant Deficiency
  • 391727 2022-005
    Significant Deficiency
  • 391728 2022-005
    Significant Deficiency
  • 391729 2022-003
    Significant Deficiency Repeat
  • 391730 2022-003
    Significant Deficiency Repeat
  • 391731 2022-003
    Significant Deficiency Repeat
  • 391732 2022-003
    Significant Deficiency Repeat
  • 391733 2022-003
    Significant Deficiency Repeat
  • 391734 2022-003
    Significant Deficiency Repeat
  • 391735 2022-003
    Significant Deficiency Repeat
  • 391736 2022-003
    Significant Deficiency Repeat
  • 391737 2022-003
    Significant Deficiency Repeat
  • 391738 2022-003
    Significant Deficiency Repeat
  • 391739 2022-003
    Significant Deficiency Repeat
  • 391740 2022-003
    Significant Deficiency Repeat
  • 391741 2022-003
    Significant Deficiency Repeat
  • 391742 2022-003
    Significant Deficiency Repeat
  • 391743 2022-003
    Significant Deficiency Repeat
  • 391744 2022-003
    Significant Deficiency Repeat
  • 391745 2022-003
    Significant Deficiency Repeat
  • 391746 2022-003
    Significant Deficiency Repeat
  • 391747 2022-003
    Significant Deficiency Repeat
  • 391748 2022-003
    Significant Deficiency Repeat
  • 391749 2022-003
    Significant Deficiency Repeat
  • 391750 2022-003
    Significant Deficiency Repeat
  • 391751 2022-003
    Significant Deficiency Repeat
  • 391752 2022-003
    Significant Deficiency Repeat
  • 391753 2022-003
    Significant Deficiency Repeat
  • 391754 2022-003
    Significant Deficiency Repeat
  • 391755 2022-003
    Significant Deficiency Repeat
  • 391756 2022-003
    Significant Deficiency Repeat
  • 391757 2022-003
    Significant Deficiency Repeat
  • 391758 2022-003
    Significant Deficiency Repeat
  • 391759 2022-003
    Significant Deficiency Repeat
  • 391760 2022-003
    Significant Deficiency Repeat
  • 391761 2022-004
    Significant Deficiency Repeat
  • 391762 2022-004
    Significant Deficiency Repeat
  • 391763 2022-004
    Significant Deficiency Repeat
  • 391764 2022-004
    Significant Deficiency Repeat
  • 391765 2022-004
    Significant Deficiency Repeat
  • 391766 2022-004
    Significant Deficiency Repeat
  • 391767 2022-004
    Significant Deficiency Repeat
  • 391768 2022-004
    Significant Deficiency Repeat
  • 391769 2022-004
    Significant Deficiency Repeat
  • 391770 2022-004
    Significant Deficiency Repeat
  • 391771 2022-004
    Significant Deficiency Repeat
  • 391772 2022-004
    Significant Deficiency Repeat
  • 391773 2022-004
    Significant Deficiency Repeat
  • 391774 2022-004
    Significant Deficiency Repeat
  • 391775 2022-004
    Significant Deficiency Repeat
  • 391776 2022-004
    Significant Deficiency Repeat
  • 391777 2022-004
    Significant Deficiency Repeat
  • 391778 2022-004
    Significant Deficiency Repeat
  • 391779 2022-004
    Significant Deficiency Repeat
  • 391780 2022-004
    Significant Deficiency Repeat
  • 391781 2022-004
    Significant Deficiency Repeat
  • 391782 2022-004
    Significant Deficiency Repeat
  • 391783 2022-004
    Significant Deficiency Repeat
  • 391784 2022-004
    Significant Deficiency Repeat
  • 391785 2022-004
    Significant Deficiency Repeat
  • 391786 2022-004
    Significant Deficiency Repeat
  • 391787 2022-004
    Significant Deficiency Repeat
  • 391788 2022-004
    Significant Deficiency Repeat
  • 391789 2022-004
    Significant Deficiency Repeat
  • 391790 2022-004
    Significant Deficiency Repeat
  • 391791 2022-004
    Significant Deficiency Repeat
  • 391792 2022-005
    Significant Deficiency
  • 391793 2022-005
    Significant Deficiency
  • 391794 2022-005
    Significant Deficiency
  • 391795 2022-005
    Significant Deficiency
  • 391796 2022-005
    Significant Deficiency
  • 391797 2022-005
    Significant Deficiency
  • 391798 2022-005
    Significant Deficiency
  • 391799 2022-005
    Significant Deficiency
  • 391800 2022-005
    Significant Deficiency
  • 391801 2022-005
    Significant Deficiency
  • 391802 2022-005
    Significant Deficiency
  • 391803 2022-005
    Significant Deficiency
  • 391804 2022-005
    Significant Deficiency
  • 391805 2022-005
    Significant Deficiency
  • 391806 2022-005
    Significant Deficiency
  • 391807 2022-005
    Significant Deficiency
  • 391808 2022-005
    Significant Deficiency
  • 391809 2022-005
    Significant Deficiency
  • 391810 2022-005
    Significant Deficiency
  • 391811 2022-005
    Significant Deficiency
  • 391812 2022-005
    Significant Deficiency
  • 391813 2022-005
    Significant Deficiency
  • 391814 2022-005
    Significant Deficiency
  • 391815 2022-005
    Significant Deficiency
  • 391816 2022-005
    Significant Deficiency
  • 391817 2022-005
    Significant Deficiency
  • 391818 2022-005
    Significant Deficiency
  • 391819 2022-005
    Significant Deficiency
  • 391820 2022-005
    Significant Deficiency
  • 391821 2022-005
    Significant Deficiency
  • 391822 2022-005
    Significant Deficiency
  • 391823 2022-002
    Material Weakness
  • 391824 2022-002
    Material Weakness
  • 391825 2022-002
    Material Weakness
  • 391826 2022-004
    Significant Deficiency Repeat
  • 391827 2022-004
    Significant Deficiency Repeat
  • 391828 2022-004
    Significant Deficiency Repeat
  • 391829 2022-005
    Significant Deficiency
  • 391830 2022-005
    Significant Deficiency
  • 391831 2022-005
    Significant Deficiency
  • 391832 2022-004
    Significant Deficiency Repeat
  • 391833 2022-005
    Significant Deficiency
  • 968157 2022-004
    Significant Deficiency Repeat
  • 968158 2022-004
    Significant Deficiency Repeat
  • 968159 2022-004
    Significant Deficiency Repeat
  • 968160 2022-004
    Significant Deficiency Repeat
  • 968161 2022-004
    Significant Deficiency Repeat
  • 968162 2022-004
    Significant Deficiency Repeat
  • 968163 2022-004
    Significant Deficiency Repeat
  • 968164 2022-005
    Significant Deficiency
  • 968165 2022-005
    Significant Deficiency
  • 968166 2022-005
    Significant Deficiency
  • 968167 2022-005
    Significant Deficiency
  • 968168 2022-005
    Significant Deficiency
  • 968169 2022-005
    Significant Deficiency
  • 968170 2022-005
    Significant Deficiency
  • 968171 2022-003
    Significant Deficiency Repeat
  • 968172 2022-003
    Significant Deficiency Repeat
  • 968173 2022-003
    Significant Deficiency Repeat
  • 968174 2022-003
    Significant Deficiency Repeat
  • 968175 2022-003
    Significant Deficiency Repeat
  • 968176 2022-003
    Significant Deficiency Repeat
  • 968177 2022-003
    Significant Deficiency Repeat
  • 968178 2022-003
    Significant Deficiency Repeat
  • 968179 2022-003
    Significant Deficiency Repeat
  • 968180 2022-003
    Significant Deficiency Repeat
  • 968181 2022-003
    Significant Deficiency Repeat
  • 968182 2022-003
    Significant Deficiency Repeat
  • 968183 2022-003
    Significant Deficiency Repeat
  • 968184 2022-003
    Significant Deficiency Repeat
  • 968185 2022-003
    Significant Deficiency Repeat
  • 968186 2022-003
    Significant Deficiency Repeat
  • 968187 2022-003
    Significant Deficiency Repeat
  • 968188 2022-003
    Significant Deficiency Repeat
  • 968189 2022-003
    Significant Deficiency Repeat
  • 968190 2022-003
    Significant Deficiency Repeat
  • 968191 2022-003
    Significant Deficiency Repeat
  • 968192 2022-003
    Significant Deficiency Repeat
  • 968193 2022-003
    Significant Deficiency Repeat
  • 968194 2022-003
    Significant Deficiency Repeat
  • 968195 2022-003
    Significant Deficiency Repeat
  • 968196 2022-003
    Significant Deficiency Repeat
  • 968197 2022-003
    Significant Deficiency Repeat
  • 968198 2022-003
    Significant Deficiency Repeat
  • 968199 2022-003
    Significant Deficiency Repeat
  • 968200 2022-003
    Significant Deficiency Repeat
  • 968201 2022-003
    Significant Deficiency Repeat
  • 968202 2022-003
    Significant Deficiency Repeat
  • 968203 2022-004
    Significant Deficiency Repeat
  • 968204 2022-004
    Significant Deficiency Repeat
  • 968205 2022-004
    Significant Deficiency Repeat
  • 968206 2022-004
    Significant Deficiency Repeat
  • 968208 2022-004
    Significant Deficiency Repeat
  • 968209 2022-004
    Significant Deficiency Repeat
  • 968210 2022-004
    Significant Deficiency Repeat
  • 968211 2022-004
    Significant Deficiency Repeat
  • 968212 2022-004
    Significant Deficiency Repeat
  • 968213 2022-004
    Significant Deficiency Repeat
  • 968214 2022-004
    Significant Deficiency Repeat
  • 968215 2022-004
    Significant Deficiency Repeat
  • 968216 2022-004
    Significant Deficiency Repeat
  • 968217 2022-004
    Significant Deficiency Repeat
  • 968218 2022-004
    Significant Deficiency Repeat
  • 968219 2022-004
    Significant Deficiency Repeat
  • 968220 2022-004
    Significant Deficiency Repeat
  • 968221 2022-004
    Significant Deficiency Repeat
  • 968222 2022-004
    Significant Deficiency Repeat
  • 968223 2022-004
    Significant Deficiency Repeat
  • 968224 2022-004
    Significant Deficiency Repeat
  • 968225 2022-004
    Significant Deficiency Repeat
  • 968226 2022-004
    Significant Deficiency Repeat
  • 968227 2022-004
    Significant Deficiency Repeat
  • 968228 2022-004
    Significant Deficiency Repeat
  • 968229 2022-004
    Significant Deficiency Repeat
  • 968230 2022-004
    Significant Deficiency Repeat
  • 968231 2022-004
    Significant Deficiency Repeat
  • 968232 2022-004
    Significant Deficiency Repeat
  • 968233 2022-004
    Significant Deficiency Repeat
  • 968234 2022-005
    Significant Deficiency
  • 968235 2022-005
    Significant Deficiency
  • 968236 2022-005
    Significant Deficiency
  • 968237 2022-005
    Significant Deficiency
  • 968238 2022-005
    Significant Deficiency
  • 968239 2022-005
    Significant Deficiency
  • 968240 2022-005
    Significant Deficiency
  • 968241 2022-005
    Significant Deficiency
  • 968242 2022-005
    Significant Deficiency
  • 968243 2022-005
    Significant Deficiency
  • 968244 2022-005
    Significant Deficiency
  • 968245 2022-005
    Significant Deficiency
  • 968246 2022-005
    Significant Deficiency
  • 968247 2022-005
    Significant Deficiency
  • 968248 2022-005
    Significant Deficiency
  • 968249 2022-005
    Significant Deficiency
  • 968250 2022-005
    Significant Deficiency
  • 968251 2022-005
    Significant Deficiency
  • 968252 2022-005
    Significant Deficiency
  • 968253 2022-005
    Significant Deficiency
  • 968254 2022-005
    Significant Deficiency
  • 968255 2022-005
    Significant Deficiency
  • 968256 2022-005
    Significant Deficiency
  • 968257 2022-005
    Significant Deficiency
  • 968258 2022-005
    Significant Deficiency
  • 968259 2022-005
    Significant Deficiency
  • 968260 2022-005
    Significant Deficiency
  • 968261 2022-005
    Significant Deficiency
  • 968262 2022-005
    Significant Deficiency
  • 968263 2022-005
    Significant Deficiency
  • 968264 2022-005
    Significant Deficiency
  • 968265 2022-002
    Material Weakness
  • 968266 2022-002
    Material Weakness
  • 968267 2022-002
    Material Weakness
  • 968268 2022-004
    Significant Deficiency Repeat
  • 968269 2022-004
    Significant Deficiency Repeat
  • 968270 2022-004
    Significant Deficiency Repeat
  • 968271 2022-005
    Significant Deficiency
  • 968272 2022-005
    Significant Deficiency
  • 968273 2022-005
    Significant Deficiency
  • 968274 2022-004
    Significant Deficiency Repeat
  • 968275 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
17.245 Trade Adjustment Assistance $166,154
17.285 Apprenticeship USA Grants $127,448
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $94,014
93.558 Temporary Assistance for Needy Families $92,011
17.207 Employment Service/wagner-Peyser Funded Activities $34,480
84.002 Adult Education - Basic Grants to States $25,200
17.801 Jobs for Veterans State Grants $10,051
17.259 Wia Youth Activities $8,830
17.258 Wia Adult Program $6,131
17.278 Wia Dislocated Worker Formula Grants $5,960
84.425 Education Stabilization Fund $1,046
93.563 Child Support Enforcement $793
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $25
17.268 H-1b Job Training Grants $11
17.225 Unemployment Insurance $2
17.277 Workforce Investment Act (wia) National Emergency Grants $-8,181