EIN: 850223430
UEI: GSA_MIGRATION
Audited by: CRI
Oversight agency: 17 [Department of Labor]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 7, 2021. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by June 7, 2022 (1546 days ago).
What is a management decision? →FAC accepted this audit on January 14, 2021 — management decision was due July 14, 2021.
Out of 40 timesheets reviewed for internal controls over compliance, CRI noted 4 timesheets that were signed by an employee and the Supervisor, but did not show CFO review. The sample was not statistically valid. Criteria: Per 2 CFR section 200.303 the Agency?s controls over payroll require that employee timesheets are signed by the employee and by the Supervisor and then a review by the CFO of the employee?s timesheet. Internal Controls of the Uniform Guidance states that the non-federal entity must: (a) Establish and maintain effective internal controls over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Questioned Costs: None Effect: Errors in the calculation or payment of personnel compensation may not be detected by controls that are not operating. Cause: Oversight by the CFO not showing review on 4 timesheets. Auditors? Recommendation: The Agency should ensure that policies and procedures related to payroll are followed. The CFO should ensure each timesheet has been reviewed for completeness and accuracy. Management Response: We agree with the auditors' comments. The lack of evidence for a thorough review of some timesheets was an oversight by the CFO. The Program Supervisor is now reviewing staff timesheets for completeness and accuracy prior to submitting them to SER Finance who are also carefully re-reviewing the timesheets and approving prior to finalization of payroll and the filing of the payroll documentation.
Show full finding ▾Hide full finding ▴2020-001 ? Deficiency in Operation of Control over Timesheets (Significant Deficiency) Federal Program Information: Funding Agency: U.S. Department of Labor Federal Award Agreement Number: Pass-through Award Year: 2020 Title: WIOA Cluster Program CFDA Number: 17.258, 17.278 Pass-through Agency: Northern Area Local Workforce Development Board and Workforce Connection of Central New Mexico Pass-through Identification Number: NB-2019-004, C19-001-SER Condition: Out of 40 timesheets reviewed for internal controls over compliance, CRI noted 4 timesheets that were signed by an employee and the Supervisor, but did not show CFO review. The sample was not statistically valid. Criteria: Per 2 CFR section 200.303 the Agency?s controls over payroll require that employee timesheets are signed by the employee and by the Supervisor and then a review by the CFO of the employee?s timesheet. Internal Controls of the Uniform Guidance states that the non-federal entity must: (a) Establish and maintain effective internal controls over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Questioned Costs: None Effect: Errors in the calculation or payment of personnel compensation may not be detected by controls that are not operating. Cause: Oversight by the CFO not showing review on 4 timesheets. Auditors? Recommendation: The Agency should ensure that policies and procedures related to payroll are followed. The CFO should ensure each timesheet has been reviewed for completeness and accuracy. Management Response: We agree with the auditors' comments. The lack of evidence for a thorough review of some timesheets was an oversight by the CFO. The Program Supervisor is now reviewing staff timesheets for completeness and accuracy prior to submitting them to SER Finance who are also carefully re-reviewing the timesheets and approving prior to finalization of payroll and the filing of the payroll documentation.
2020-001 ? Deficiency in Operation of Control over Timesheets (Significant Deficiency) Federal Program Information: Funding Agency: U.S. Department of Labor Federal Award Agreement Number: Pass-through Award Year: 2020 Title: WIOA Cluster Program CFDA Number: 17.258, 17.278 Pass-through Agency: Northern Area Local Workforce Development Board and Workforce Connection of Central New Mexico Pass-through Identification Number: NB-2019-004, C19-001-SER Condition: Out of 40 timesheets reviewed for internal controls over compliance, CRI noted 4 timesheets that were signed by an employee and the Supervisor, but did not show CFO review. The sample was not statistically valid. Recommendation: The Agency should ensure that policies and procedures related to payroll are followed. The CFO should ensure each timesheet has been reviewed for completeness and accuracy. Corrective Action: We agree with the auditors' comments. The lack of evidence for a thorough review of some timesheets was an oversight by the CFO. The Program Supervisor is now reviewing staff timesheets for completeness and accuracy prior to submitting them to SER Finance who are also carefully re-reviewing the timesheets and approving prior to finalization of payroll and the filing of the payroll documentation. Estimated Date of Completion: This has been completed as the Program Supervisor now reviewing the timesheet for completeness before sending to the CFO who is now re-reviewing the timesheets prior to filing the payroll documentation. Person(s) Responsible: CFO and Program Supervisor
The Agency had 3 timesheets out of a sample of 40 that had requests for time off that did not match the payroll register. The sample was not statistically valid. Criteria: Per 2 CFR section 200.303 ? The Agency?s controls over payroll require that employee timesheets are signed by the employee and by the Supervisor and then a review by the CFO of the employee?s timesheet. Internal Controls of the Uniform Guidance states that the non-federal entity must: (a) Establish and maintain effective internal controls over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR section 200.431 ? Compensation ? fringe benefits, paragraph (i) When a non-Federal entity uses the cash basis of accounting, the costs of leave is recognized in the period that the leave is taken and paid for. Questioned Costs: Employee Leave was incorrectly reduced from accrued leave in the WIOA Adult Worker Central Program. Employee leave was also incorrectly accrued and not reduced in the WIOA Adult Worker Central Program and one in the WIOA Adult Worker Northern Area Program. Total dollar amount variance of $511 was divided by the total payroll population to get a 2% error and then multiplied by the total salary expenditures of the program that could potentially result in an estimated questioned cost of $48,628. Effect: Oversight by Supervisors. Cause: Incorrect handling of Leave due to oversight and/or clerical input error by payroll staff. Auditors? Recommendation: The Agency should continue with the CFO review of timesheets to the payroll register prior to check issuance. Payroll staff should ensure there is no clerical input errors and request for time off agrees to the employees' timesheet and to the payroll register. Management Response: We agree with the auditors' comments. SER timesheets are manually entered into the ABILA Payroll System. While it is imperative that time is accurately entered to eliminate the possibility of payroll errors, a reconciliation between the keying of timesheets and the calculated payroll register is required prior to the generation of payroll. Once the reconciliation has taken place the calculated payroll register is reviewed and initialed by the CFO prior to processing of payroll. The errors that occurred in this instance were due to the lack of a thorough review on behalf of the CFO who is now reviewing all payrolls prior to posting the payroll to the ABILA general ledger. Also, all leave balances have be audited, reconciled and adjusted to reflect accurate balances. We have since ensured that review process is being followed to ensure that this was an isolated situation. Also, since July 1st, 2020, SER?s financial personnel has stabilized which should have a positive impact on eliminating any future findings moving forward.
Show full finding ▾Hide full finding ▴2020-002 ? Employee Leave Improperly Calculated (Significant Deficiency) Federal Program Information: Funding Agency: U.S. Department of Labor Federal Award Agreement Number: Pass-through Award Year: 2020 Title: WIOA Cluster Program CFDA Number: 17.258, 17.278 Pass-through Agency: Northern Area Local Workforce Development Board, Workforce Connection of Central New Mexico Pass-through Identification Number: NB-2019-004, C19-001-SER Condition: The Agency had 3 timesheets out of a sample of 40 that had requests for time off that did not match the payroll register. The sample was not statistically valid. Criteria: Per 2 CFR section 200.303 ? The Agency?s controls over payroll require that employee timesheets are signed by the employee and by the Supervisor and then a review by the CFO of the employee?s timesheet. Internal Controls of the Uniform Guidance states that the non-federal entity must: (a) Establish and maintain effective internal controls over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR section 200.431 ? Compensation ? fringe benefits, paragraph (i) When a non-Federal entity uses the cash basis of accounting, the costs of leave is recognized in the period that the leave is taken and paid for. Questioned Costs: Employee Leave was incorrectly reduced from accrued leave in the WIOA Adult Worker Central Program. Employee leave was also incorrectly accrued and not reduced in the WIOA Adult Worker Central Program and one in the WIOA Adult Worker Northern Area Program. Total dollar amount variance of $511 was divided by the total payroll population to get a 2% error and then multiplied by the total salary expenditures of the program that could potentially result in an estimated questioned cost of $48,628. Effect: Oversight by Supervisors. Cause: Incorrect handling of Leave due to oversight and/or clerical input error by payroll staff. Auditors? Recommendation: The Agency should continue with the CFO review of timesheets to the payroll register prior to check issuance. Payroll staff should ensure there is no clerical input errors and request for time off agrees to the employees' timesheet and to the payroll register. Management Response: We agree with the auditors' comments. SER timesheets are manually entered into the ABILA Payroll System. While it is imperative that time is accurately entered to eliminate the possibility of payroll errors, a reconciliation between the keying of timesheets and the calculated payroll register is required prior to the generation of payroll. Once the reconciliation has taken place the calculated payroll register is reviewed and initialed by the CFO prior to processing of payroll. The errors that occurred in this instance were due to the lack of a thorough review on behalf of the CFO who is now reviewing all payrolls prior to posting the payroll to the ABILA general ledger. Also, all leave balances have be audited, reconciled and adjusted to reflect accurate balances. We have since ensured that review process is being followed to ensure that this was an isolated situation. Also, since July 1st, 2020, SER?s financial personnel has stabilized which should have a positive impact on eliminating any future findings moving forward.
2020-002 ? Employee Leave Improperly Calculated (Significant Deficiency) Federal Program Information: Funding Agency: U.S. Department of Labor Federal Award Agreement Number: Pass-through Award Year: 2020 Title: WIOA Cluster Program CFDA Number: 17.258, 17.278 Pass-through Agency: Northern Area Local Workforce Development Board, Workforce Connection of Central New Mexico Pass-through Identification Number: NB-2019-004, C19-001-SER Condition: The Agency had 3 timesheets out of a sample of 40 that had requests for time off that did not match the payroll register. The sample was not statistically valid. Recommendation: The Agency should continue with the CFO review of timesheets to the payroll register prior to check issuance. Payroll staff should ensure there is no clerical input errors and request for time off agrees to the employees' timesheet and to the payroll register. Corrective Action: We agree with the auditors' comments. SER timesheets are manually entered into the ABILA Payroll System. While it is imperative that time is accurately entered to eliminate the possibility of payroll errors, a reconciliation between the keying of timesheets and the calculated payroll register is required prior to the generation of payroll. Once the reconciliation has taken place the calculated payroll register is reviewed and initialed by the CFO prior to processing of payroll. The errors that occurred in this instance were due to the lack of a thorough review on behalf of the CFO who is now reviewing all payrolls prior to posting the payroll to the ABILA general ledger. Also, all leave balances have be audited, reconciled and adjusted to reflect accurate balances. We have since ensured that review process is being followed to ensure that this was an isolated situation. Also, since July 1st, 2020, SER?s financial personnel has stabilized which should have a positive impact on eliminating any future findings moving forward. Estimated Date of Completion: This has been completed as the CFO is now reviewing all payrolls prior to posting the payroll to the ABILA general ledger. Person(s) Responsible: CFO
FAC accepted this audit on March 24, 2020 — management decision was due September 24, 2020.
The Agency compensated an employee for 6 hours of work that were not reflected on the employee?s timesheet. Criteria: 2 CFR 200.430 ? Compensation ? personal services, paragraph (i) Standards for Documentation of Personnel Expenses of the Uniform Guidance states that Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Questioned Costs: Employee was paid an additional 6 hours charged to the WIOA Dislocated Worker Northern Area program than what was approved on timesheet. The Employee?s hourly rate of $17.33 was multiplied by the number of hours overpaid to get a questioned cost of $104. Effect: The Agency overcompensated an employee for time that was not documented. Cause: Oversight and/or clerical input error by payroll staff. Auditors? Recommendation: The Agency should continue with the CFO review of timesheets to the payroll register prior to check issuance. Payroll staff should ensure there is no clerical input errors and compensation agrees to work reflected on the employee?s timesheet. Management Response: The lack of oversight and key entry was due to the shortage of staff during the period of the finding. The Agency has since hired staff and the following action has been implemented as of July 2019 to improve the situation and ensure the accuracy of payroll costs. The payroll staff double checks the hours they enter for each employees? timesheet prior to creating the payroll register. The CFO or Finance Director review the timesheets to the payroll register to ensure that each employees? hours and compensation are accurate prior to the approval of payroll and the issuance of payroll checks.
Show full finding ▾Hide full finding ▴FA 2019-001 ? Unallowable Costs (Significant Deficiency) Federal Program Information: Funding Agency: U.S. Department of Labor Federal Award Agreement Number: Pass-through Award Year: 2019 Title: WIOA Dislocated Worker CFDA Number: 17.278 Pass-through Agency: Northern Area Local Workforce Development Board Pass-through Identification Number: NB-2018-OS-1 Condition: The Agency compensated an employee for 6 hours of work that were not reflected on the employee?s timesheet. Criteria: 2 CFR 200.430 ? Compensation ? personal services, paragraph (i) Standards for Documentation of Personnel Expenses of the Uniform Guidance states that Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Questioned Costs: Employee was paid an additional 6 hours charged to the WIOA Dislocated Worker Northern Area program than what was approved on timesheet. The Employee?s hourly rate of $17.33 was multiplied by the number of hours overpaid to get a questioned cost of $104. Effect: The Agency overcompensated an employee for time that was not documented. Cause: Oversight and/or clerical input error by payroll staff. Auditors? Recommendation: The Agency should continue with the CFO review of timesheets to the payroll register prior to check issuance. Payroll staff should ensure there is no clerical input errors and compensation agrees to work reflected on the employee?s timesheet. Management Response: The lack of oversight and key entry was due to the shortage of staff during the period of the finding. The Agency has since hired staff and the following action has been implemented as of July 2019 to improve the situation and ensure the accuracy of payroll costs. The payroll staff double checks the hours they enter for each employees? timesheet prior to creating the payroll register. The CFO or Finance Director review the timesheets to the payroll register to ensure that each employees? hours and compensation are accurate prior to the approval of payroll and the issuance of payroll checks.
FA 2019-001 ? Unallowable Costs (Significant Deficiency) Federal Program Information: Funding Agency: U.S. Department of Labor Federal Award Agreement Number: Pass-through Award Year: 2019 Title: WIOA Dislocated Worker CFDA Number: 17.278 Pass-through Agency: Northern Area Local Workforce Development Board Pass-through Identification Number: NB-2018-OS-1 Condition: The Agency compensated an employee for 6 hours of work that were not reflected on the employee?s timesheet. Auditors? Recommendation: The Agency should continue with the CFO review of timesheets to the payroll register prior to check issuance. Payroll staff should ensure there is no clerical input errors and compensation agrees to work reflected on the employee?s timesheet. Management Response: The lack of oversight and key entry was due to the shortage of staff during the period of the finding. The Agency has since hired staff and the following action has been implemented as of July 2019 to improve the situation and ensure the accuracy of payroll costs. The payroll staff double checks the hours they enter for each employees? timesheet prior to creating the payroll register. The CFO or Finance Director review the timesheets to the payroll register to ensure that each employees? hours and compensation are accurate prior to the approval of payroll and the issuance of payroll checks.
Out of 40 timesheets reviewed for internal controls over compliance, we noted 3 timesheets that were signed by the employee but not by the supervisor. Criteria: The Agency?s controls over payroll require that employee timesheets are signed by the employee and by the Supervisor upon review. 2 CFR 200.303 - Internal Controls of the Uniform Guidance states that the non-federal entity must: (a) Establish and maintain effective internal controls over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Questioned Costs: None noted. Effect: Errors in the calculation or payment of personnel compensation may not be detected by controls that are not operating. Cause: Oversight by Supervisors. Auditors? Recommendation: The Agency should ensure that policies and procedures related to payroll are followed. Supervisors should ensure each timesheet has been reviewed and signed off on. Management Response: The lack of a thorough review during the period of the finding was due to the shortage of staff. The Agency has since hired staff and the following action has been taken to improve the situation as of July 2019. When timesheets are received for processing, the signatures are reviewed by the payroll staff. If signatures are missing, the timesheet is sent back to the supervisor to obtain the necessary signatures. In addition, the CFO or Finance Director will provide a written email to supervisors to remind them of their responsibility to review and sign off on employees? timesheets. They both will also review the policy and procedure for payroll and make any amendments necessary to include the review of the payroll to ensure compliance with internal controls and federal policies and regulations.
Show full finding ▾Hide full finding ▴FA 2019-002 ?Deficiency in Operation of Control over Timesheets (Significant Deficiency) Federal Program Information: Funding Agency: U.S. Department of Labor Federal Award Agreement Number: Pass-through Award Year: 2019 Title: WIOA In-school Youth, WIOA Dislocated Worker CFDA Number: 17.259, 17.278 Pass-through Agency: Northern Area Local Workforce Development Board Pass-through Identification Number: Y-WIOA/NAB-2018-08, NB-2018-OS-1 Condition: Out of 40 timesheets reviewed for internal controls over compliance, we noted 3 timesheets that were signed by the employee but not by the supervisor. Criteria: The Agency?s controls over payroll require that employee timesheets are signed by the employee and by the Supervisor upon review. 2 CFR 200.303 - Internal Controls of the Uniform Guidance states that the non-federal entity must: (a) Establish and maintain effective internal controls over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Questioned Costs: None noted. Effect: Errors in the calculation or payment of personnel compensation may not be detected by controls that are not operating. Cause: Oversight by Supervisors. Auditors? Recommendation: The Agency should ensure that policies and procedures related to payroll are followed. Supervisors should ensure each timesheet has been reviewed and signed off on. Management Response: The lack of a thorough review during the period of the finding was due to the shortage of staff. The Agency has since hired staff and the following action has been taken to improve the situation as of July 2019. When timesheets are received for processing, the signatures are reviewed by the payroll staff. If signatures are missing, the timesheet is sent back to the supervisor to obtain the necessary signatures. In addition, the CFO or Finance Director will provide a written email to supervisors to remind them of their responsibility to review and sign off on employees? timesheets. They both will also review the policy and procedure for payroll and make any amendments necessary to include the review of the payroll to ensure compliance with internal controls and federal policies and regulations.
FA 2019-002 ?Deficiency in Operation of Control over Timesheets (Significant Deficiency) Federal Program Information: Funding Agency: U.S. Department of Labor Federal Award Agreement Number: Pass-through Award Year: 2019 Title: WIOA In-school Youth, WIOA Dislocated Worker CFDA Number: 17.259, 17.278 Pass-through Agency: Northern Area Local Workforce Development Board Pass-through Identification Number: Y-WIOA/NAB-2018-08, NB-2018-OS-1 Condition: Out of 40 timesheets reviewed for internal controls over compliance, we noted 3 timesheets that were signed by the employee but not by the supervisor. Auditors? Recommendation: The Agency should ensure that policies and procedures related to payroll are followed. Supervisors should ensure each timesheet has been reviewed and signed off on. Management Response: The lack of a thorough review during the period of the finding was due to the shortage of staff. The Agency has since hired staff and the following action has been taken to improve the situation as of July 2019. When timesheets are received for processing, the signatures are reviewed by the payroll staff. If signatures are missing, the timesheet is sent back to the supervisor to obtain the necessary signatures. In addition, the CFO or Finance Director will provide a written email to supervisors to remind them of their responsibility to review and sign off on employees? timesheets. They both will also review the policy and procedure for payroll and make any amendments necessary to include the review of the payroll to ensure compliance with internal controls and federal policies and regulations.
Out of 25 participant files reviewed, one did not include a staff signature on a required participant acknowledgement form. Criteria: The Agency?s controls over participant records include the retention of a signed Participant Agreement form in each participant file to signify participants review and acknowledgement of WIOA requirements/procedures. 2 CFR 200.303 - Internal Controls of the Uniform Guidance states that the nonfederal entity must: (a) Establish and maintain effective internal controls over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Questioned Costs: None noted. Effect: If participant files are not fully reviewed to assure thorough forms completion, missing signatures, and incomplete forms demonstrate non-compliance with the agencies own internal controls. Cause: Oversight by staff during participant file maintenance. Auditors? Recommendation: The Agency should review Participant Agreements for Staff signature on all agreements. Staff should ensure signed documentation is placed in participant?s file. Management Response: In January 2020 the Program Operations Manager communicated to staff that SER has developed and fully implemented a review process that requires signature and review prior to submittal of any fiscal documentation for potential paid activity. This process requires assigned Managers to carefully review records both in the Workforce Center Operating System (WCOS) and hard copy to assure eligibility, forms completion, signature and maintenance in participant records. A copy of this process was provided to the auditing team during their review.
Show full finding ▾Hide full finding ▴FA 2019-003 ? Deficiency in Operation of Control over Participant Files (Significant Deficiency) Federal Program Information: Funding Agency: U.S. Department of Labor Federal Award Agreement Number: Pass-through Award Year: 2019 Title: WIOA Adult Program CFDA Number: 17.258 Pass-through Agency: Northern Area Local Workforce Development Board Pass-through Identification Number: NB-2018-OS-1 Condition: Out of 25 participant files reviewed, one did not include a staff signature on a required participant acknowledgement form. Criteria: The Agency?s controls over participant records include the retention of a signed Participant Agreement form in each participant file to signify participants review and acknowledgement of WIOA requirements/procedures. 2 CFR 200.303 - Internal Controls of the Uniform Guidance states that the nonfederal entity must: (a) Establish and maintain effective internal controls over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Questioned Costs: None noted. Effect: If participant files are not fully reviewed to assure thorough forms completion, missing signatures, and incomplete forms demonstrate non-compliance with the agencies own internal controls. Cause: Oversight by staff during participant file maintenance. Auditors? Recommendation: The Agency should review Participant Agreements for Staff signature on all agreements. Staff should ensure signed documentation is placed in participant?s file. Management Response: In January 2020 the Program Operations Manager communicated to staff that SER has developed and fully implemented a review process that requires signature and review prior to submittal of any fiscal documentation for potential paid activity. This process requires assigned Managers to carefully review records both in the Workforce Center Operating System (WCOS) and hard copy to assure eligibility, forms completion, signature and maintenance in participant records. A copy of this process was provided to the auditing team during their review.
FA 2019-003 ? Deficiency in Operation of Control over Participant Files (Significant Deficiency) Federal Program Information: Funding Agency: U.S. Department of Labor Federal Award Agreement Number: Pass-through Award Year: 2019 Title: WIOA Adult Program CFDA Number: 17.258 Pass-through Agency: Northern Area Local Workforce Development Board Pass-through Identification Number: NB-2018-OS-1 Condition: Out of 25 participant files reviewed, one did not include a staff signature on a required participant acknowledgement form. Auditors? Recommendation: The Agency should review Participant Agreements for Staff signature on all agreements. Staff should ensure signed documentation is placed in participant?s file. Management Response: In January 2020 the Program Operations Manager communicated to staff that SER has developed and fully implemented a review process that requires signature and review prior to submittal of any fiscal documentation for potential paid activity. This process requires assigned Managers to carefully review records both in the Workforce Center Operating System (WCOS) and hard copy to assure eligibility, forms completion, signature and maintenance in participant records. A copy of this process was provided to the auditing team during their review.
The Agency has a check signature policy that requires the Executive Director and the Chair of Board to sign all checks over $50,000. Per inquiry with the Director of Finance and Administration, all checks are being signed by the Executive Director and the Director of Finance and Administration. Criteria: 2 CFR 200.303 ? Internal Controls of the Uniform Guidance states that the non-federal entity must: (a) Establish and maintain effective internal controls over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Questioned Costs: None noted. Effect: Checks over $50,000 are not subjected to the level of review required by the Agency?s policies and procedures. Cause: Turnover within the Agency has resulted in policies and procedures not aligning with current practices. Auditors? Recommendation: The Agency should revise the Check Policy for current practice. Management Response: Starting in January 2020, the Executive Director and Finance Director will review and amend the current check signature policy to conform to current practice. To ensure another level of review exists, the policy will be amended to require designated Board member review of the check register on a quarterly basis.
Show full finding ▾Hide full finding ▴FA 2019-004 ? Design Deficiency in Internal Controls ? Check Policy (Significant Deficiency) Federal Program Information: Funding Agency: U.S. Department of Labor Federal Award Agreement Number: Pass-through Award Year: 2019 Title: WIOA Cluster Program CFDA Number: 17.258, 17.259, 17.278 Pass-through Agency: Northern Area Local Workforce Development Board Pass-through Identification Number: NB-2018-OS-1, Y-WIOA/NAB-2018-08 Condition: The Agency has a check signature policy that requires the Executive Director and the Chair of Board to sign all checks over $50,000. Per inquiry with the Director of Finance and Administration, all checks are being signed by the Executive Director and the Director of Finance and Administration. Criteria: 2 CFR 200.303 ? Internal Controls of the Uniform Guidance states that the non-federal entity must: (a) Establish and maintain effective internal controls over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Questioned Costs: None noted. Effect: Checks over $50,000 are not subjected to the level of review required by the Agency?s policies and procedures. Cause: Turnover within the Agency has resulted in policies and procedures not aligning with current practices. Auditors? Recommendation: The Agency should revise the Check Policy for current practice. Management Response: Starting in January 2020, the Executive Director and Finance Director will review and amend the current check signature policy to conform to current practice. To ensure another level of review exists, the policy will be amended to require designated Board member review of the check register on a quarterly basis.
FA 2019-004 ? Design Deficiency in Internal Controls ? Check Policy (Significant Deficiency) Federal Program Information: Funding Agency: U.S. Department of Labor Federal Award Agreement Number: Pass-through Award Year: 2019 Title: WIOA Cluster Program CFDA Number: 17.258, 17.259, 17.278 Pass-through Agency: Northern Area Local Workforce Development Board Pass-through Identification Number: NB-2018-OS-1, Y-WIOA/NAB-2018-08 Condition: The Agency has a check signature policy that requires the Executive Director and the Chair of Board to sign all checks over $50,000. Per inquiry with the Director of Finance and Administration, all checks are being signed by the Executive Director and the Director of Finance and Administration. Auditors? Recommendation: The Agency should revise the Check Policy for current practice. Management Response: Starting in January 2020, the Executive Director and Finance Director will review and amend the current check signature policy to conform to current practice. To ensure another level of review exists, the policy will be amended to require designated Board member review of the check register on a quarterly basis.
FAC accepted this audit on March 21, 2019 — management decision was due September 21, 2019.
FAC accepted this audit on November 19, 2017 — management decision was due May 19, 2018.
FAC accepted this audit on October 27, 2016 — management decision was due April 27, 2017.
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