Sneak Preview: DOL To Update Guidance on Monitoring Expenditures

May 15, 2016 | By Jerry Ashworth | Post a Comment

xsass_bookshot(The following was excerpted from a recent article in the Single Audit Information Service.) The Department of Labor’s (DOL) Veterans’ Employment and Training Services (VETS) plans to update its internal monitoring guidance to ensure that VETS monitoring officials more closely review state expenditure documentation under the Jobs for Veterans State Grant (JVSG) program to determine if they are charging unallowable costs to the program, in response to a recent audit by the DOL Office of Inspector General (OIG).

Under the JVSG program, DOL awards a noncompetitive grant to each state workforce agency to provide employment and training services to eligible veterans at job centers. In federal fiscal year (FY) 2013, DOL allocated $170 million in JVSG funding to states. The program funds two job center positions: (1) disabled veteran outreach program specialists, who assist in providing services for disabled and other eligible veterans; and (2) local veteran employment representatives, who conduct outreach to employers to increase employment opportunities for veterans and to help veterans stay employed.

To determine whether costs charged to the JVSG program were allowable, the DOL OIG audited financial records under the program for the states of Louisiana and Oklahoma from October 2012 to December 2013. The program requires states to submit quarterly and a final VETS-402 Expenditure Detail Report, and SF-425 Federal Financial Reports. The expenditure detail report contains the cumulative amount of JVSG funds allocated through the end of the period being reporting for the job center positions funded, including summary information on unobligated balances. The SF-425s contain the quarterly and cumulative amount of cash receipts and disbursements, federal expenditures and unobligated balances through the end of the reporting period.

Although the OIG determined that VETS had internal controls in place to ensure that states submitted their required financial reports under the JVSG program, it noted that VETS did not have controls to ensure that states claimed only allowable expenses under the program. Rather than reviewing supporting expenditure documentation, VETS monitoring officials typically compared state JVSG expenditure totals to their budgeted totals, and relied on certifications from states identifying that their reported JVSG expenditures were accurate and allowable, OIG added.

(The full version of this story has now been made available to all for a limited time on Thompson’s Grants Compliance Expert site.)

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