Latino Coalition for Community LeadershipNon-Profit

Department of Labor Reintegration of Ex-Offenders; AL #17.270; Grant No. YF-38593-22-60-A-6 Grant Period – Year ended June 30, 2024 Criteria Per 2 CFR 200.302(b)(2), all grant recipients are required to report accurate, current, and complete financial data on the Employment and Training Administration (ETA) 9130 Financial Report no later than 45 calendar days after the end of each reporting quarter. Condition During our audit of federal awards for the year ended June 30, 2024, we noted that the Organization misreported federal funds received and expended, consistent with an error identified during a Department of Labor monitoring review for the period ended December 31, 2023. The Organization incorrectly reported the grant’s cumulative federal share of program expenditures of $2,095,846 in its ETA-9130 Financial Report for the quarter ending June 30, 2024. Total audited program expenditures for the quarter ending June 30, 2024 were $2,253,774, which resulted in a variance of $157,928. Management subsequently resubmitted a revised ETA-9130 Financial Report, which has been approved and accepted by the Department of Labor. Cause Management did not implement sufficient internal controls to ensure accurate reporting of federal funds. Effect The recurrence of this error suggests a potential systemic issue, creating the risk of material noncompliance and questioned costs. Questioned Costs – None noted. Recommendations 2024-1-a - We recommend that management implement a more robust review process to oversee reporting, and conduct periodic reconciliations to ensure accuracy. Management Comments and Corrective Action Plan Management agrees with the finding and will implement the recommended corrective actions.