Workforce Development Board of Southeast MissouriNon-Profit

Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding. As was noted in the prior year audit, which due to the timing had a carryover impact to the current year, unfortunate circumstances existed prior to the departure of two key employees within the Organization that significantly impacted the daily financial reporting and processing capabilities of the Organization. The Organization however, made a concerted effort to ensure that it met Federal program reporting compliance standards. Effective October 1, 2022, the Organization became a 100% pass thru agent of all Federal programs, thereby significantly reducing the financial reporting and processing requirements. The Organization has accordingly changed their financial reporting and processing procedures that has improved the overall internal control over financial reporting and compliance. Federal programs for the year ended June 30, 2023 were subjected to monitoring procedures and subrecipient auditing procedures resulting in unqualified reports and no identification of disallowable costs.

Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding. Unfortunate circumstances existed prior to the departure of two key employees within the Organization that significantly impacted the daily financial reporting and processing capabilities of the Organization. The Organization however, made a concerted effort to ensure that it met Federal program reporting compliance standards. Subsequent Federal program monitoring procedures for programs during the fiscal year ended June 30, 2022 were conducted with the Organization successfully passing. The Organization subsequently has changed their financial reporting and processing procedures that has improved the overall internal control over financial reporting and compliance. Additionally, effective October 1, 2022, the Organization became a 100% pass thru agent of all Federal programs and thereby significantly reducing the financial reporting and processing requirements.

Federal Award Findings and Questioned Costs: U.S. Department of Labor and U.S. Department of Health and Human Services: Item 2021-002: Internal Control over Compliance Significant Deficiency: As discussed in finding 2021-001, the Organization?s balance sheet accounts, other than cash accounts, were not being reconciled and reviewed in a timely manner. Unreconciled differences were identified and adjustments were required. Without proper control over the reconciliation of all balance sheet accounts, including the timeliness of such reconciliations, the control over allowable costs and the reporting of allowable costs could be compromised. The Organization must improve procedures to ensure monthly reconciliation of all balance sheet accounts are being performed and done so in a timely manner. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and will continue to provide the necessary training for all individuals involved in this area. The Organization is aware of these reconciliation concerns and has implemented additional processes and procedures and provided additional oversight.