Federal Award Findings, Questioned Costs and Corrective Action Plan

More documents

Recommendations

Info

Federal Award Findings, Questioned Costs and Corrective Action Plan(Reformatted from FY 2009 Single Audit Report)Effect: Failure to operate the BAM program in accordance with the requirements can result in noncompliancewith federal regulations and failure to identify overpaid, underpaid, or erroneously denied claims. This finding is asignificant deficiency in internal control over compliance and noncompliance with the Unemployment Insuranceprograms’ special tests and provisions requirements.Cause: Due to limited staff during the period, the Benefit Accuracy Measurement Unit was unable to test theminimum number of benefit payments.Recommendation: The Benefit Accuracy Measurement Unit should test the minimum number of benefit paymentsfor each week, quarter, or year to comply with federal guidelines.Agency Response: ConcurContact person: Andrew Baldwin, Deputy UI Program Administrator, (520) 770-3769Anticipated completion date: June 30, 2010Agency Corrective Action Plan: During state fiscal year 2009, unemployment insurance claims increased by over400% and the Division of Employment and Rehabilitation Services (DERS) experienced staffing shortages andhigh staff turnover. As a result, DERS was unable to sample the required number of claims for the BenefitAccuracy Measurement (BAM) process. DERS increased staffing to address the increase in unemploymentinsurance activities and increased the BAM sample size to ensure sufficient cases are pulled each quarter. For thequarter ending March 31, 2010, DERS exceeded the federal target requirement.09-107CFDA No.: 17.225 Unemployment Insurance, #s UI-15108-06-55, UI-15785-07-55, UI-16733-08-55, and UI-18007-09-5517.225 ARRA—Unemployment Insurance, # UI-18007-09-55U.S. Department of LaborAward Period: October 1, 2005 through September 30, 2008October 1, 2006 through September 30, 2009October 1, 2007 through September 30, 2010October 1, 2008 through September 30, 2011ReportingQuestioned Cost: N/AFindingCriteria: In accordance with 29 CFR §97.20(b)(6), amounts presented on the reports should agree to the entity’sfinancial records.Condition and context: The Department of Economic Security, Division of Employment and RehabilitationServices, did not always follow its policies and procedures to ensure that information reported was supported bythe Division’s records. Specifically, the Division was unable to provide supporting documentation for variousfinancial and nonfinancial data reported on its December, 31, 2008, and June 30, 2009, ETA 581–ContributionOperations reports and its June 30, 2009, ETA-227–Overpayment Detection and Recovery Activities reports.Effect: Incorrect financial and nonfinancial data may be submitted to the federal grantor, resulting in errors inanalysis or other determinations. This finding did not result in questioned costs since these reports were not usedto request reimbursement of federal expenditures. This finding is a significant deficiency in internal control overcompliance and noncompliance with the Unemployment Insurance and ARRA—Unemployment Insuranceprograms’ reporting requirements.10
Federal Award Findings, Questioned Costs and Corrective Action Plan(Reformatted from FY 2009 Single Audit Report)Cause: The system-generated reports had programming deficiencies. As a result, the Division made unsupportedmanual adjustments to the ETA 581 and ETA 227 reports in order to agree to the ending balances on othersystem-generated reports.Recommendation: The Division should investigate the system deficiencies and correct any faulty programming toensure that internal reports are properly generated to support various financial and nonfinancial data. If manualadjustments are required, the Division should retain adequate supporting documentation for these adjustments.This finding was similar to a prior-year finding.Agency Response: ConcurContact person: Andrew Baldwin, Deputy UI Program Administrator, (520) 770-3769Anticipated completion date: June 30, 2010Agency Corrective Action Plan: DERS is researching the automated system coding to identify any coding issuesthat may have led to the discrepancies found by the auditors. In addition, DERS contacted the US Department ofLabor (US DOL) and inquired about the submitted reports. In consultation with the US DOL representative, thereports were found to have been submitted satisfactorily based upon US DOL guidance. No issues were noted. IfDERS identifies issues during review of the system coding, changes will be implemented to resolve the errors.09-108WIA Cluster:CFDA No.: 17.258 WIA Adult Program, #s AA-15466-06-55, AA-16015-07-55-A-4, AA-17107-08-55, andAA-18266-09-5517.258 ARRA—WIA Adult Program, #AA-18266-09-5517.259 WIA Youth Activities, #s AA-15466-06-55, AA-16015-07-55-A-4, AA-17107-08-55, andAA-18266-09-5517.259 ARRA—WIA Youth Activities, #AA-18266-09-5517.260 WIA Dislocated Workers, #s AA-15466-06-55, AA-16015-07-55-A-4, AA-17107-08-55,and AA-18266-09-5517.260 ARRA—WIA Dislocated Workers, #AA-18266-09-55U.S. Department of LaborAward Period: April 1, 2006 through June 30, 2009April 1, 2007 through June 30, 2010April 1, 2008 through June 30, 2011April 1, 2009 through June 30, 2012ReportingQuestioned Cost: N/AFindingCriteria: In accordance with 20 CFR §667.300, states must report financial, participant, and performance data inaccordance with instructions issued by the U.S. Department of Labor.Condition and context: The Department of Economic Security, Division of Employment and RehabilitationServices, Employment Administration, and Financial Services Administration did not accurately prepare theETA-9130 Financial Reports during fiscal year 2009. While performing test work on 24 reports, auditors notedfor grant award AA-17107-08-55, the Financial Services Administration omitted administrative expenditurestotaling $4,940 on the September 30, 2008, local adult report. In addition, the Employment Administration11
Page 1 and 2: Federal Award Findings, Questioned
Page 9: Federal Award Findings, Questioned
Page 41: Federal Award Findings, Questioned

Federal Award Findings, Questioned Costs and Corrective Action Plan

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?