EIN: 930857426
UEI: L8KKXDL7J6C5
Audited by: KERN & THOMPSON, LLC
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 March 2, 2026. 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 September 2, 2026 (4 days from today).
What is a management decision? →2025-001 Finding - Federal Award Type: Matching, Level of Effort, Earmarking - Significant Deficiency in Internal Control over Compliance. Criteria / Requirement: 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish, document, and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Earmarking includes requirements that specify the minimum and/or maximum amount or percentage of the program’s funding that must/may be used for specific activities, including funds provided to subrecipients. Per the grant agreement, grantee may use up to ten percent of the total amount of grant funds awarded for the youth and adult activities for grant’s administrative costs, as allowed under the federal regulations governing these programs. Condition / Context: During the year June 30, 2025, WSI was tracking administrative cost by fund, but inadvertently had coded program expenses into the administrative fund. This error was corrected and WSI is in compliance with the earmarking requirement, however it was noted that WSI did not have a process to monitor and ensure that they were under the maximum earmark percentage allowed. Cause: WSI was aware of the requirement and has an established system to track costs but did not have procedures in place to monitor the earmarking requirement of the maximum percentage of administrative costs allowed. Effect: Failure to maintain sufficient internal controls and proper procedures may result in wrongful use of federal funds and non-compliance with federal awards. Questioned Costs: None. Recommendation: The Organization should establish written policies and procedures regarding monitoring of the maximum earmark percentage allowed. Management’s Response: Management concurs with the finding and has developed a report to monitor WIOA administrative expenditures to ensure compliance with applicable earmarking requirements. The corrective action has been implemented prior to this report and has been incorporated into the monthly close process.
Show full finding ▾Hide full finding ▴2025-001 Finding - Federal Award Type: Matching, Level of Effort, Earmarking - Significant Deficiency in Internal Control over Compliance. Criteria / Requirement: 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish, document, and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Earmarking includes requirements that specify the minimum and/or maximum amount or percentage of the program’s funding that must/may be used for specific activities, including funds provided to subrecipients. Per the grant agreement, grantee may use up to ten percent of the total amount of grant funds awarded for the youth and adult activities for grant’s administrative costs, as allowed under the federal regulations governing these programs. Condition / Context: During the year June 30, 2025, WSI was tracking administrative cost by fund, but inadvertently had coded program expenses into the administrative fund. This error was corrected and WSI is in compliance with the earmarking requirement, however it was noted that WSI did not have a process to monitor and ensure that they were under the maximum earmark percentage allowed. Cause: WSI was aware of the requirement and has an established system to track costs but did not have procedures in place to monitor the earmarking requirement of the maximum percentage of administrative costs allowed. Effect: Failure to maintain sufficient internal controls and proper procedures may result in wrongful use of federal funds and non-compliance with federal awards. Questioned Costs: None. Recommendation: The Organization should establish written policies and procedures regarding monitoring of the maximum earmark percentage allowed. Management’s Response: Management concurs with the finding and has developed a report to monitor WIOA administrative expenditures to ensure compliance with applicable earmarking requirements. The corrective action has been implemented prior to this report and has been incorporated into the monthly close process.
02/09/2026 Worksystems, Inc respectfully submits the following corrective action plan for the year ending June 30, 2025. Audit: July 01, 2024 – June 30, 2025 The findings from the schedule of findings and questioned cost are discussed below. The findings are numbered with the number assigned in the schedule. FINDING - FEDERAL AWARD PROGRAMS AUDITS U.S. Department Labor (pass through from the Oregon Higher Education Coordinating Commission) 2025-001 WIOA Cluster – Assistance Listing #17.258, 17.259, 17.278 Recommendation: The Organization should establish written policies and procedures regarding monitoring of the maximum earmark percentage allowed. Explanation of disagreement with audit findings: There is no disagreement with the audit finding. Action taken in response to finding: Fiscal management promptly developed a report to monitor WIOA administrative expenditures to ensure compliance with applicable earmarking requirements. It was recently used to confirm compliance during the quarterly FSR reporting cycle. Fiscal management has also incorporated the review of this report into the monthly close process. Action Plan: Fiscal management is currently reviewing and updating existing process documentation, calculation templates, and journal entry import procedures related to cost pool allocations to WIOA funds. These procedures will be revised as necessary and will incorporate the validation report and related control activities. Upon completion, fiscal staff will be retrained on the updated procedures to ensure consistent application and understanding. In addition, fiscal management will perform a review of current program year allocations to WIOA funds to confirm continued compliance with administrative cost limitations. Name(s) of the contact people responsible for correction action: Andrew L Fitch, CFO afitch@worksystems.org 503-478-7357. Plan completion date for corrective action plan: 03/31/2026
FAC accepted this audit on February 20, 2025 — management decision was due August 20, 2025.
FAC accepted this audit on March 26, 2024 — management decision was due September 26, 2024.
FAC accepted this audit on March 5, 2023 — management decision was due September 5, 2023.
FAC accepted this audit on February 8, 2022 — management decision was due August 8, 2022.
FAC accepted this audit on March 7, 2021 — management decision was due September 7, 2021.
FAC accepted this audit on February 19, 2020 — management decision was due August 19, 2020.
FAC accepted this audit on December 20, 2018 — management decision was due June 20, 2019.
FAC accepted this audit on February 20, 2018 — management decision was due August 20, 2018.
FAC accepted this audit on December 18, 2016 — management decision was due June 18, 2017.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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