Chemung Schuyler Steuben Workforce Development, Inc.

Reference Number: 2020-001 U.S. Department of Labor Passed Through NYS Department of Labor WIOA Cluster 17.258, 17.259, 17.278 Finding: Difference between Reconciled Bank Balance and Project Report to New York State Department of Labor (NYSDOL) for WIOA. Condition: NYSDOL conducted a Financial Management Review of CSS Workforce and noted differences going back to 2014 between balances reported to NYSDOL on a cash basis and the Agency?s books and records, which were recorded on the accrual basis. Beginning in 2018, personnel from CSS Workforce have been working with the Manager of the Western Region Financial Oversight and Technical Assistance (FOTA) to resolve these differences. Upon completion, any adjustments needed to correct NYSDOL reports or the general ledger will be made by WIOA program. This effort is still in process as of the date of our report. Criteria: CSS Workforce is responsible for reporting complete and accurate information regarding the sources and uses of federal funds. Cause: Staff were not adequately trained to prepare the monthly NYSDOL reports. This created differences between the general ledger and the NYSDOL reports which were not reconciled. Contributing to the differences being discussed between the Agency and FOTA is the Agency?s use of accrual accounting and allocation of employee benefits using a cost allocation pool, similar to the accounting used by other agencies receiving WIOA funds. Effect: The lack of reconciliation of information recorded in the general ledger to that which was reported to NYSDOL resulted in differences in the reported cash balances. Questioned Costs: None noted. Recurring Finding: Previously reported as reference numbers 2019-001, 2018-001, and 2017-001.

Section III - Federal Award Findings and Questioned Costs Reference Number: 2019-001 U.S. Department of Labor Passed Through NYS Department of Labor WIA/WIOA Cluster 17.258, 17.259, 17.278 Finding: Difference between Reconciled Bank Balance and Project Report to New York State Department of Labor (NYSDOL) for WIOA. Condition: NYSDOL conducted a Financial Management Review of CSS Workforce and noted differences going back to 2014 between balances reported to NYSDOL on a cash basis and the Agency?s books and records, which were recorded on the accrual basis. Beginning in 2018, personnel from CSS Workforce have been working with the Manager of the Western Region Financial Oversight and Technical Assistance (FOTA) to resolve these differences. Upon completion, any adjustments needed to correct NYSDOL reports or the general ledger will be made by WIOA program. This effort is still in process as of the date of our report. Criteria: CSS Workforce is responsible for reporting complete and accurate information regarding the sources and uses of federal funds. Cause: Staff were not adequately trained to prepare the monthly NYSDOL reports. This created differences between the general ledger and the NYSDOL reports which were not reconciled. Contributing to the differences being discussed between the Agency and FOTA is the Agency?s use of accrual accounting and allocation of employee benefits using a cost allocation pool, similar to the accounting used by other agencies receiving WIOA funds. Effect: The lack of reconciliation of information recorded in the general ledger to that which was reported to NYSDOL resulted in differences in the reported cash balances. Questioned Costs: None noted. Recurring Finding: Previously reported as reference numbers 2018-001 and 2017-001. Recommendation: We recommend CSS Workforce continue working with FOTA to uncover past differences and make whatever adjustments are necessary. Going forward, we recommend cash basis reports to NYSDOL be reconciled to the general ledger and any differences researched and corrected. Management Response: Management will implement a monthly closing and reconciliation process for the preparation of the WIOA monthly summary cash report and the TAA monthly summary cash report to the CSS Workforce general ledger, including ending cash balances.

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