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Programmatic: __ Financial
Contract Number: YIS-12-ACE Mod 1
Contractor: Academy for Career Education (ACE)
Period of Review: July 1, 2013 to February 28, 2014
Monitor Date(s): April 22, 2014
Conducted By: Sherri Lindloff
Finance Specialist
Contractor Contact(s): Leigh Berdrow
Director
Thea Sullivan
Office Manager/Registrar
Entrance Conference: None
Exit Conference: None
Scope of Monitoring:
Financial monitoring to ensure compliance with:
Section 184 of the WIA public law requiring proper fiscal control and accounting procedures sufficient to
comply with the applicable uniform cost principles included in the appropriate OMB circulars.
Section: 5.7 of the WIA State Compliance Policies requiring that expenditures have been made against
the correct cost categories and are within the cost limitations specified in the Act.
Tools and Documents:
The monitoring of the Academy for Career Education (ACE) program encompassed a review of
personnel, operating, and registrant costs for contract expenditures that were incurred in the
months September 2013 and December 2013. The review period is from July 1, 2013 through
February 28 2014. The documents reviewed while monitoring ACE included: Qualification
Packet, Memorandum of Understanding (MOU) with Truckee Meadow Community Schools
(TMCC), Profit and Loss Statements, monthly Request for Funds (RFF), time cards, invoices,
proof of payments, client trackers excel worksheets, general ledger detail reports and other
miscellaneous documents.
Observations:
The ACE contract include funding for at-risk, low income/disabled In School Youth for training
in Building Trade Industry (BT), Computer Aided Drafting (CADD) or duel credit Diesel
Technician programs. The goal of the project for BT and CADD students is to graduate high
school with a Career and Technical Education (CTE) endorsed high school diploma and obtain
skills in construction or CADD and be ready to enter the industry workforce. When youth
complete the Diesel Technician Program they earn a minimum of 5 college credits and graduate
with a CTE endorsed high school diploma. Ace offers training in the Clean Energy,
Manufacturing and Information Technology Sectors.
As of month end February 2014 ACE had expended 72% of the budget with 67% of the contract
completed. The contract is on track to be fully spent by the end of the contract.
Timecards and proof of payment were reviewed for payroll billed to the programs in the sample
months. The timecards were all signed by both the employee and a supervisor, documented in the
payroll system as evidenced in the general ledger reports and billed correctly to the RFF.
The ACE program registrant and operating costs were reviewed for the sample months and
backup was provided for all charges billed to the program to included vendor invoices and proof
of payment. The charges were coded correctly as evidenced on the monthly Request for Funds
and P&L statements.
The allocation methodology for transportation costs is calculated based on the percentage of WIA
vs. non WIA clients enrolled in each class. The methodology and calculation was reviewed and
found to be accurate.
The methodology used to allocate Personnel costs is the actual time spent on the program based
on the time cards. With the exception of the bus driver, his time is calculated based on the
percentage of WIA vs non WIA clients in the classes. Timecards and charges were reviewed for
the sampled months and found to be accurate with the exception of Dean’s wages billed in
September 2014. The wage amount was copied from the wrong section of the payroll report and
billed incorrectly. A credit of $244.33 will be posted to the 4/14 RFF.
There is no client Work Experience in these programs therefore no client payroll was monitored.
The YTD program expenditures as of February 2014 reconciled to the YTD general ledger
report for the program with no variance.
ACE uses Sage 50 Complete Accounting 2014 software (formally called Peachtree) to maintain
its books and records and uses Payroll Systems of Nevada payroll service to process payroll.
Based on the sampling of data reviewed for this monitoring the Financial Policies are followed
with concern to the WIA program at ACE.
Bank Reconciliations for September 2013 and December 2013 were reviewed and found to be
reconciled in a timely manner and balanced back to the cash general ledger balance with no
variances. There were 3 checks in the Outstanding Checks section of the reconciliations dated in
September and November of 2012. The contractor indicated that these three items have been
resolved and will show cleared in the April 2014 reconciliation which will be forwarded to
Nevadaworks by the end of May 2014.
Corrective Action:
None
Commendations:
Thea, I appreciate your prompt response to questions and requests for information. Thank you
for another year of excellent record keeping and I look forward to working with you for the
remainder of the contract.
Page 1 of 3
Programmatic: __ Financial
Contract Number: DW-12-BFR Mod 1
Contractor: Bristlecone Family Resources (BFR)
Period of Review: July 1, 2013 to February 28, 2014
Monitor Date(s): April 18, 2014
Conducted By: Sherri Lindloff
Finance Specialist
Contractor Contact(s): Tammra Pearce,
Executive Director
Bonnie Phillips
Director of Finance
Entrance Conference: None
Exit Conference: None
Scope of Monitoring:
Financial monitoring to ensure compliance with:
Section 184 of the WIA public law requiring proper fiscal control and accounting procedures
sufficient to comply with the applicable uniform cost principles included in the appropriate OMB
circulars.
Section: 5.7 of the WIA State Compliance Policies requiring that expenditures have been made
against the correct cost categories and are within the cost limitations specified in the Act.
Page 2 of 3
Tools and Documents:
BFR Qualification Packet, monthly Request for Funds (RFF), Profit and Loss (P&L) statements, invoices, and proof of payment of expenditures, signed time cards, copies of
paychecks, client tracker, and other miscellaneous documents were reviewed.
Observations:
The goal of the Back2Work program is to provide dislocated workers who have
completed treatment for substance abuse addiction acquire the information, skills and
support they need to re-enter the workforce by teaching them interview skills, how to
write a resume and cover letter, and how to address employment barriers. The program is
a key component in clients moving from residential treatment to transitional living and
outpatient services. This accomplishment leads to the achievement of long-term goals of
self-sufficiency and independence in the community which is a key component to
successful and sustained recovery.
As of February 2014 BFR had expended approximately 34% of the total budget with 67% of the contract completed. The biggest impact on the spend rate is low program
enrollments. The program anticipated enrolling 70 new clients with 22 existing clients
from prior periods, a total of 92 active clients. As of this monitoring the program has
enrolled 23 new clients and has 6 clients from prior periods, a total of 29 active clients.
BFR submits a monthly Client Tracker which documents per client expenditures and reconciles back to the billing for Registrant Costs as shown on the monthly RFFs. All
clients that have been reported on the monthly Client Tracker have been verified as being
enrolled in NJCOS prior to expenditure reimbursement.
BFR continues to use QuickBooks financial software and the financial statements are prepared by the Director of Finance on a monthly basis.
Staff wages and Program costs charged to the grant in September 2013 and January
2014 were reviewed and have proper backup documentation to include signed time cards,
copies of paychecks, payroll reports, invoices and proof of payment. Additionally
Registrant costs billed to the program in October 2013 and February 2014 were
reviewed and found to have proper back up and were billed to the program in the proper
categories.
A YTD General Ledger detail report and P&L were reviewed and reconciled back to the February 2014 RFF with no variance.
The payroll tax and workman’s comp is being billed to the program at the budgeted rate of approximately 11.65%, the actual rate is about 13.16%. Bristlecone may “true-up” the
billing to reflect the actual if desired.
Page 3 of 3
Of the payroll reviewed it appeared that the Paid Time Off of the Case Manager and the Trainer have not been charged to the program. Bristlecone may also “true-up” the billing
to reflect the PTO not billed to the program if desired.
Indirect Operating Costs are calculated for the Finance Director’s time. The payroll was
reviewed and reported correctly for the sample months September 2013 and
January 2014.
Kohn & Company issued a Single Audit Report on March 27, 2014 for Bristlecone Family Resources as of June 30, 2013, including an A-133 Report.
o The audit did not identify any deficiencies in internal controls over financial
reporting, and Kohn & Company issued an unmodified opinion for the Financial
Statements.
o No audit findings were disclosed that are required to be reported in accordance
with section 510(a) of Circular A-133.
o Kohn & Company issued an unmodified opinion for compliance for major
programs.
o However, Kohn & Company states that Bristlecone does not qualify as a low-risk
auditee as defined by OMB Circular A-133 since it has not been required to have
a Single Audit for both of the past two years.
Commendation(s):
Bonnie, I appreciate your prompt response to questions and requests for information. Thank you for another year of excellent record keeping and I look forward to working
with you for the remainder of the contract.
Programmatic: __ Financial
Contract #: YOS-13-CCNN
Contractor: Career College of Northern Nevada (CCNN)
Period for Review: July 1, 2013 to April 30, 2014
Dates of Monitoring: Desk Monitoring starting May 28, 2014
Conducted By: Sherri Lindloff, Finance Specialist
Contractor Contact(s): Pam Persons-Cisneros, Business Manager
Entrance Conference: Desk Monitoring
Exit Conference: Desk Monitoring
Scope of Monitoring:
Financial monitoring to ensure compliance with:
Section 184 of the WIA public law requiring proper fiscal control and accounting procedures sufficient to
comply with the applicable uniform cost principles included in the appropriate OMB circulars.
Section: 5.7 of the WIA State Compliance Policies requiring that expenditures have been made against
the correct cost categories and are within the cost limitations specified in the Act.
Tools and Documents:
CCNN Contractor Qualification Packet, monthly Request for Funds (RFF), P&L Statements,
general ledger detail reports, invoices, payroll time cards, proof of payments, Excel worksheets,
and other miscellaneous documents were reviewed. The CCNN Monitoring encompassed a
review of program expenditures from July 1, 2013 to April 30, 2014.
Observations:
This is an Out of School Youth HVAC/R Diploma Program designed to prepare students for
entry level employment by developing the essential skills and knowledge base to meet the
standards and demands of today‘s industry. Clients will be introduced to the basic principles,
functions and practical applications of residential and light commercial heating, air conditioning,
and refrigeration, how it pertains to a Service Technician as a career choice in the HVAC/R field.
Included will be a systematic approach to the proper diagnostics and evaluation of a HVAC/R
system‘s performance.
As of month end April 2014 the contract completed for both programs was 83%. The percentage
of contract funds expended for the YOS program is 33%. This program will be substantially
underspent at the end of the program year mainly due to the fact that the program estimated to
enroll 13 client but only enroll 7 with 2 of those dropped early. This is the first year CCNN is
serving the out of school youth population.
The clients were reviewed to be properly enrolled and funded in NJCOS system prior to
expenditure reimbursement. There is no Work Experience (WEX) or On the Job Training (OJT)
in the contract therefore no client payroll for was monitored.
The YTD, 04/30/14, General Ledger Detail report was reviewed and reconciled back to the YTD
information on the 04/14 RFF’s with no variances.
Back up to the Registrant Costs was provided for the expenditures billed to the program. The
backup included:
A copy of each AR Student Ledger which lists the individual charges to each client and
this reconciled back to the billing for each month.
The Financial Aid Award Letter listing all financial aid awarded to each client including
Pell Grant.
Each client’s Enrollment Agreement documenting the agreement between the school and
the client including the program enrolled in, the cost and the applicant (client) and
Admissions signature.
Copy of vendor invoices and proof of payment.
Sign out sheet evidencing the client’s receipt of the items.
While pulling the information for the Monitoring Request for Information the contractor found a
billing error concerning Textbooks charges. A credit of $4.98 will be applied to the 6/14 RFF to
compensate for the overbilling.
Bank Reconciliations for December 2013 and March 2014 were reviewed and were reconciled
in a timely manner and cash reconciled back the general ledger. There were no checks that were
sufficiently aged as to require escheatment to the state based on NRS 120A.
The Payroll billed to the program was reviewed and the backup included time cards for each
person billed to the program signed by the employee and supervisor. Payroll was billed to the
program based on actual hours worked and the time cards matched the time billed to the program.
Cougar Mountain System is used for Payroll and Accounts Payable at CCNN.
The college is required by the Department of Education to have their financials audited and
reported to the DOE. CCNN provided a copy of the audit as of year ending December 31, 2013,
done by West & Company. The college has no findings related to the WIA program.
CCNN has 2 officers, Larry Nathan Clark, the President/Director, and Pamela G. Cisneros, the
Secretary/Treasurer/Director. Career College of Northern Nevada has waived the requirement for
a meeting of the board of directors. A copy of the “Unanimous Consent in Lieu of 2013 Annual
Meeting of the Board of Directors of Career Colleges, Inc.” was reviewed. The two officers of
the corporation meet at least once a week to discuss business matters.
Corrective Action(s):
NONE
Commendation(s):
Pam is always a pleasure to work with. Thank you for excellent record keeping and prompt
response to questions and requests for information. I look forward to working with you for the
remainder of the contract.
Coordinating Workforce Development for Northern Nevada
MONITORING REPORT
Programmatic: __ Financial
Contract #: YOS-13 CIS Mod 1 AND YIS-13-CIS Mod 1
Contractor: Communities in Schools of Nevada (CIS)
Period for Review: July 1, 2013 to December 31, 2013
Dates of Monitoring: Desk Monitoring starting February 14, 2014
Conducted By: Sherri Lindloff, Finance Specialist
Contractor Contact(s): Melissa Aguirre, Executive Director
Allison Archer, CPA LLC
Entrance Conference: Desk Monitoring
Exit Conference: Desk Monitoring
Scope of Monitoring:
Financial monitoring to ensure compliance with:
Section 184 of the WIA public law requiring proper fiscal control and accounting procedures
sufficient to comply with the applicable uniform cost principles included in the appropriate OMB
circulars.
Section: 5.7 of the WIA State Compliance Policies requiring that expenditures have been made
against the correct cost categories and are within the cost limitations specified in the Act.
Coordinating Workforce Development for Northern Nevada
MONITORING REPORT
Tools and Documents:
CIS Contractor Qualification Packet, monthly Request for Funds (RFF), general ledger
detail reports, invoices, payroll time cards, expense reports, Excel worksheets, and other
miscellaneous documents were reviewed. The CIS Monitoring encompassed a review of
a sampling of program expenditures from July 1, 2013 and December 31, 2013 for both
the In-School Youth (YIS) and Out of School Youth (YOS) programs.
Observations:
In-School Youth (YIS) program - The CIS Academy program targets youth who are at risk of not graduating from high school and/or are involved in the Juvenile Probation
system. The program is designed to re-engage the clients in their educational goals by
providing mentoring to help the students with credit remediation as well as grade
improvement in ongoing classes. The program includes case management and three
classes each at Elko High School and Spring Creek High School and continued case
management for youth who have completed CIS Academy classes.
Out of School Youth (YOS) program – This is a high school campus run program designed to reengage out of school youth and assist these youth/young adult to earn a
GED/HSE or adult education diploma as well as prepare them for post-high school life
through resiliency and workforce readiness training.
As of month end December 2013 the contract completed for both programs was 50%. The percentage of the contract funds expended for YIS and YOS was 41% and 30%
respectively. Currently both programs are under spent in the Operating and Registrant
Cost areas. The Elko County School District is notoriously slow in billing which is about
70% of the Operating Cost in YIS and 85% in YOS. Typically the Direct Client Costs
occur the last two months or so of the program. The contractor has indicated that these
programs will be close to fully spent by the end of the program year.
The YIS and YOS programs contracted to enroll 36 and 15 clients respectively and
planned on having 79 and 12 existing clients. As of this monitoring The YIS program
enrolled 39 and YOS 12 clients for the current year and had 46 and 12 existing clients
respectively. There is no client work experience (WEX) in the contract therefore no
client payroll was monitored.
Bank Reconciliations for July 2013 and December 2013 were reviewed and both were reconciled in a timely manner and cash reconciled back the general ledger with no
variance. There were no checks older than 4 month old in the reconciliations therefore no
apparent escheatment issues present themselves.
Back up to the Operating and Registrant Costs was provided for the expenditures billed to the program in the sampled months to include copies of invoices and/or receipts and
proof of payment. Expenditures were recorded correctly in the accounting system,
verified in the general ledger detail report and tracked to the Request for Funds.
Coordinating Workforce Development for Northern Nevada
MONITORING REPORT
The Payroll billed to the program was reviewed for both programs for July 2013 and
December 2013. The backup provided included:
Wages and related personnel costs are charged to the program on an actual percentage of time worked. A Personnel Activity Report for all personnel billed
to the program was provided for the sample period. The report states the
percentage of time worked and allocated to the program and was signed by the
employee and supervisor.
Payroll Summary report from Quickbooks which lists employee payroll detail for all individuals paid through the program.
Payroll reconciliation that incorporates all billable items related to the program and reconciles payroll back to the RFF and the general ledger.
The majority of payroll is paid to employees via Direct Deposit. The Service
Account Summary report provides proof of payment for all direct deposit
payments made to the employees paid by the program. There are periodic manual
payroll checks and when those occur for individuals billed to the program a copy
of the manual check is provided for review. The Service Account Summary
report is reconciled to the payroll report.
Copies of invoiced for Fringe Benefits billed to the program and proof of payment was provided for the sample months monitored.
The Indirect Cost Methodology for the contracts were based on estimated Nevadaworks revenue as a percentage of estimated total revenue. That percentage was then applied to
the total administrative costs. Indirect Costs have been charged at an estimated rate of
5%, the actual Methodology rate calculated out to approximately 7%. Therefore the
Indirect Costs charged to the program are under the actual calculated rate.
The YTD, 12/31/13, General Ledger Detail report was reviewed for both programs and
reconciled back to the YTD information on the 12/13 RFF’s with no variances.
Accounting Policies and Procedures were provided. The documented internal control system should provide management and readers of CIS financial reporting with
reasonable assurance that resources are being safeguarded and accounted for
appropriately.
Corrective Action(s):
NONE
Commendation(s):
Allison, I appreciate your prompt response to questions and requests for information. Thank you for another year of excellent program record keeping and I look forward to
working with you for the remainder of the contract.
MONITORING REPORT
Page 1 of 3
Programmatic: __ Financial
Contract Number: DW-12-DR Mod 1
Contractor: Disability Resources, Inc., (DR)
Period of Review: July 1, 2013 to April 30, 2014
Monitor Date(s): Started May 28, 2014
Conducted By: Sherri Lindloff
Finance Specialist
Contractor Contact(s): Vivian Ruiz
Executive Director
David Shearer
Controller
Entrance Conference: None
Exit Conference: None
Scope of Monitoring:
Financial monitoring to ensure compliance with:
Section 184 of the WIA public law requiring proper fiscal control and accounting procedures
sufficient to comply with the applicable uniform cost principles included in the appropriate OMB
circulars.
Section: 5.7 of the WIA State Compliance Policies requiring that expenditures have been made
against the correct cost categories and are within the cost limitations specified in the Act.
MONITORING REPORT
Page 2 of 3
Tools and Documents:
Disability Resources (DR) Contractor Qualification Packet, the monthly Request for
Funds (RFF’s), monthly P&L reports, vendor invoices and receipts, proof of payment, excel
worksheets, payroll reconciliation reports, time cards, and other miscellaneous documents were
reviewed.
The Disability Resources monitoring encompassed a review of the July 2013 through
April 30, 2014 expenditures.
Observations:
DR N2U is a Dislocated Workers program designed to assist clients in developing
practical computer technician skills and to help them find and maintain employment in
this field. In addition, clients receive assistance with developing an IT technical resume,
interview skills, presentation skills, sales and marketing skills and business networking
skills to build their sphere of influence while learning to represent the company they are
working for. This program provides training in the Governor’s Workforce Board’s IT
and Clean Energy Sectors.
Disability Resources uses the QuickBooks Premiere 2012 Non-Profit edition for accounts
payable and all accounting functions except for payroll and the company Payroll Systems
executes all payroll functions for the organization.
As of April 30, 2014 the Disability Resources N2U Program is 79% expended with 83%
of the program completed. If the program continues on the current expenditure rate it
will be close to fully expended at the end of the program.
The number of clients proposed for N2U was 24 and the number of participants enrolled
and funded in NJCOS to date is 24. The program is run on a 6 cohort basis therefore as
of this monitoring the program client count is full. NJCOS enrollments were prior to the
participants receiving service.
The Bank Reconciliations were reviewed for the months of September 2013 and
December 2013. The reconciliations were completed in a timely manner and the cash
balance in the bank reconciled back to the cash balance in the general ledger. There was
one check in the Outstanding Checks section of the December 2013 reconciliation that
was 7 months old, check no. 13212, 5/15/13, R. Krause, $35.50. . If this check is still
uncleared at the time of this reporting it should be researched. Other than this check
there seems to be no other outstanding items in the reconciliations that are questionable,
therefore no apparent escheatment issues present themselves with these reconciliations.
The General Ledger detail report for the period July 1, 2013 through April 30, 2014 was
reviewed and found to reconciled back to the 4/14 RFF with no variance.
Client participation in work experience was reviewed for completed timecards and
included signature by both employee and supervisor, Payroll Systems payroll reports,
MONITORING REPORT
Page 3 of 3
proper recording in the accounting system and were found to be billed correctly on the
RFF.
Staff payroll was reviewed; timecards were all signed by both the employee and
supervisor, documented in the payroll system as evidenced on the Payroll System reports
and recorded correctly in the accounting system.
All vendor payments were reviewed for proper documentation and correct reporting in
the accounting system. Back up for the expenditures included invoice or receipt from the
vendor and proof of payment. The expenditures were recorded correctly in the
Quickbooks accounting system and on the Request for Fund.
The last two Board Meeting minutes where reviewed for content.
Disability Resources provided a copy of the General Financial Accounting Procedures.
The procedures should provide management and readers of DR financial reporting with
reasonable assurance that resources are being safeguarded and accounted for
appropriately. Based on the financial documents reviewed the procedures are being
followed.
Corrective Action(s):
NONE
Commendations:
David, I appreciate your prompt response to questions and requests for information.
Thank you for another year of excellent record keeping and I look forward to working
with you for the remainder of the contract.
Coordinating Workforce Developmenl for Northern N evad a
june 4 , 2014
Ann Silver, Executive Director JOIN, Inc. I DOS Terminal Way, Suite 202 Reno, NV 89502
Re: financial Monitoring Visit - May 5, 6, 7, 8 & 9, 2014
Dear Ann,
Please find the enclosed Financial Monitoring Report for Contracts:
AD-12-jCAR-Mod# I AD-12 -j E LK-Mod# I AD-12-jELY-Mod# I AD-12-jfAL-Mod# I AD-12-jREN-Mod# I AD-12-jWIN-Mod# I
DW-12-jCAR-Mod# I DW-12-jELK-Mod# I DW-12-jELY-Mod# I DW-12-jfAL-Mod# I DW-12-jREN-Mod# I DW-12-jWIN-Mod# I
DW-12-jPRO-Mod# I DWNEG-jOIN-A DWNEG-jOIN-8
If you have any questions, please feel free to call Beth at 775-284-1338 or myself at 775-284-1345.
zJ���aJ Marilou Parayno financial Specialist
Cc Cathy Evans, JOIN, Inc. Cc Beth Wicks, Nevadaworks
6490 South McCarran Blvd., Building A, Suite I, NV 89509-6119 www.nevadaworks.com 775-337-8600 fax 775-337-9589
Coordinating Workforce Development for Northern Nevada
MONITORING REPORT
Programmatic: _________ Financial ___X_______ Contract Number: AD-12-JCAR-Mod#1, AD-12-JELK-Mod#1, AD-12-JELY-Mod#1, AD-12-JFAL-Mod#1, AD-12-JREN-Mod#1, AD-12-JWIN-
Mod#1, DW-12-JCAR-Mod#1, DW-12-JELK-Mod#1, DW-12-JELY-Mod#1, DW-12-JFAL-Mod#1, DW-12-JPRO-Mod#1, DW-12-JREN-Mod#1, DW-12-JWIN-Mod#1, DWNEG-13-JOIN-A and DWNEG-13-JOIN-B
Contractor: JOIN Inc. Period of Review: July 2013 to June 2014 Dates: May 5, 6, 7, 8, & 9, 2014 Conducted By: Beth Wicks and Marilou Parayno Contractor Contact(s): Cathy Evans, Finance Manager Entrance Conference: 8:00am, May 5, 2014 Exit Conference: 4:30pm, May 9, 2014 Scope of Monitoring: Financial monitoring to ensure compliance with: Section 184 of the WIA public law requiring proper fiscal control and accounting procedures sufficient to comply with the applicable uniform cost principles included in the appropriate OMB circulars. Section: 5.7 of the WIA State Compliance Policies requiring that expenditures have been made against the correct cost categories and are within the cost limitations specified in the Act. Tools and Documents: JOIN Inc. (Financial Statements, Bank Reconciliations, Revenue & Expense Reports, Accounting Policies & Procedures, Vendor invoices, Requisition Forms, ADP Reports, Client/Staff Payroll Timecards, and General Ledger Reports), Nevadaworks (Contracts, Weekly/Monthly RFF Reports, and Monthly Expenditure Reports), and other miscellaneous documents.
Observations:
As of April 30, 2014, the following is an analysis of percentage expended at 83.33% through the contract period: Carson Adult Contract was 89.01% expended. Elko Adult Contract was 79.42% expended. Ely Adult Contract was 76.48% expended. Fallon Adult Contract was 80.74% expended. Reno Adult Contract was 73.43% expended. Winnemucca Adult Contract was 67.05% expended. Carson Dislocated Worker Contract was 66.46% expended. Elko Dislocated Worker Contract was 77.13% expended. Ely Dislocated Worker Contract was 61.07% expended. Fallon Dislocated Worker Contract was 80.05% expended. Pronet Dislocated Worker Contract was 81.33% expended. Reno Dislocated Worker Contract was 69.71% expended. Winnemucca Dislocated Worker Contract was 69.75% expended.
As of April 30, 2014, the following is an analysis of percentage expended at 30% through the contract period. The Dislocated Worker National Emergency Grant is a twenty months contract from November 1, 2013 through June 30, 2015. JOIN-A Dislocated Worker National Emergency Grant was 3.40% expended. JOIN-B Dislocated Worker National Emergency Grant was 1.95% expended.
The JOIN Carson office (AD/DW) added onsite-training for the Work Readiness Credential and GED test site last year and intends to utilize for the upcoming years. The achievement of a GED and/or a Work Readiness Credential has a positive effect on Carson office clients’ knowledge, motivation, and employment success. The majority of their client expenditures were for Teachers/Instructors, tuitions, supportive services and training/workshops materials. All supportive services assistance is based on each client’s progress and attendance while in Learning Lab training or job search.
The JOIN Elko office (AD/DW) clients have been provided services on local workforce services needs which is the Health and Medical Sector and the Transportation Sector. The majority of their client expenditures were for books and supplies for various training and workshops, tuition for CDL, Dental Assistant certification, Biology, Anthropology, Accounting, Education, Work Readiness Credentials, and Microsoft Word classes. In addition, supportive services for tools, lodging, physical and drug testing and food assistance while attending CDL training, Electrical Technology program, and Welding classes.
The JOIN Ely office (AD/DW) clients have been provided an in-house GED training program that lead to GED
attainment as a means of increasing their employability. Lack of English skills meant clients struggled to fill out job applications and create resumes. The JOIN Ely office has found online resources for ESL training and an instructor was provided to assist these clients to prepare for GED testing. The majority of their client expenditures were for tuition fees, training and workshop materials, and supportive services while in training. The supportive services are based upon the client progress and attendance while in training.
The JOIN Fallon/Fernley office (AD/DW) has no significant changes in the services provided this year. The majority of their client expenditures were for tuition/fees occupational such as CDL, Dental Assistant training and C.N.A. certification, and tuition/fees basics for Lean Green Supply Chain Program, CPR, Microsoft Word and Excel, and Bookkeeping classes, and supportive services for rental assistance, transportation assistance, utilities, clothing and books while in training.
The JOIN Pronet office (DW) provides workshops to enable clients the initial tools of job search, and graduate workshops to enhance those tools and increase employability. The majority of their client expenditures were for tuitions, workshop/fees, and instructors. Among these expenses were Social Media for Business Workshops, Professional Coaching, Top Level Business Skills Workshops, TriMetrix assessment, and supportive services for rental assistance, food and transportation assistance needed for the client to work. In addition, Dale Carnegie Workshops, an 8 week course was provided to Pronet clients to provide management skills trainings. All Pronet purchases over $5000.00 with a single vendor were supported by the Sole Source procurement form or the Request for Quote form.
The JOIN Reno office (AD/DW) has added resources to accommodate changing client needs and meeting the needs
of local business sectors. They have expanded the number of training classrooms. These classrooms were used for internal JOIN training and by partner agencies that provided on-site classes for the clients. Classes provided were Work Readiness Credential, GED preparation and workshops that address the basic business skills required by all occupational sectors. The majority of their client expenditures were for Tuition/Fees Basic, Occupational, and Workshop/Fees/Instructor.
The JOIN Winnemucca office (AD/DW) has no major changes on both programs and the staff intends to continue
providing sector training for their clients. Among those sectors include, manufacturing/material moving, healthcare, and mining. In addition, in-house secretarial and secretarial/accounting classes were also offered to improve the client employability. The majority of their client expenditures were for training materials and supportive services.
The JOIN-A and JOIN-B (DWNEG) contracts are utilized to provide training services for JOIN DW long term
unemployed clients to acquire an industry-recognized credential that enables them to obtain employment. On the Job Training is also offered. The majority of client expenditures were for tuitions for the Project Management Certification program, Medical Coding and Billing Courses, and CDL training. Overall, there were eleven clients enrolled at this time, in Pronet (6), Carson (1) and the Fallon/Fernley office (4).
A sample of the clients’ payroll was reviewed for completed timecards, payroll report documentation, and proper
recording into the accounting system. The timecards were found to have authorized signatures by the client, site supervisor, and case manager. All the clients were enrolled in the NJCOS system. The months of July and October were chosen to review in detail.
The month of December was chosen to review in detail for the staff payroll. The timecard hours and the salary
paid from the ADP report matched the Labor distribution worksheet that is the basis for all the allocations. Labor costs were allocated based on gross labor costs by employee, branch office, and program.
All Allocation Cost for the Regular Staff, Personnel Benefits, and Admin transfer were verified with the General Ledger Report. All the branches matched the Journal Entry backup. The Operations Allocation was verified in the Cost Pool and in the AD and DW programs. All the entries matched the backup on the Journal Entry. Lastly, the
Indirect Cost Allocation was verified in the individual cost pools and all entries match the backup on the Journal Entry.
A sampling of 152 vendor payments from each of the branch offices and each program were reviewed. Invoices,
requisitions, purchase orders, and check copies were reviewed for proper documentation; correct reporting in the accounting system, eligibility recording of the client in the NJCOS system and on the Approved Vendor Training list, when appropriate. The payments were documented with proper backup such as each requisition was signed by a JOIN Case manager and had a receipt from the vendor. The payments were recorded correctly in the JOIN accounting system.
Minimal errors were found while reviewing the vendor payments’ sampling, a Carson Adult Staff Instructor/Teachers expense on both Adult and Dislocated Worker was posted to Adult expense account and an Ely Adult Support Services expense was posted to Adult expense account, and the client was found to be a DW client. Cathy was able to make the corrections that same day and provided us with a journal entry copy and the General Ledger printout.
The Cost Pool Fund for the JOIN Admin (Headquarters office and Admin-All), Ely, Pronet, Reno, and Winnemucca were chosen to review in detail. The Elko, Fallon, and Carson Cost Pool Funds were monitored during the Youth Contract Monitoring on April 2, 3, 4, 2014. Samplings of the documents for 81 payments were pulled for review. The payments were all recorded correctly in the JOIN accounting system with appropriate backup.
The general ledger totals matched the Excel worksheets and balanced to the monthly expenditure reports for each contract for the months of July 2013 through February 2014.
The month of December was chosen to review in detail for the bank reconciliation. The main account bank
statement reconciled with the General Ledger. All outstanding checks were clearly listed.
Commendations: Thanks to Cathy and her staff for their time during our monitoring visit. All the sampling documents were ready for our review upon our arrival.
Coordinat i ng Workforce Development for Northern Nevad,
April 25, 2014
Ms. Carolyn Wilson, Executive Director JOIN, Inc. 1005 Terminal Way, Suite 202 Reno, NV 89502
Re: financial Monitoring Visit - April 2, 3 & 4, 2014
Dear Carolyn,
Please find the enclosed financial Monitoring Report for Contracts:
YIS-12-JE LK-Mod # I YOS-12-JCAR-Mod# I YOS-12 -J f AL-Mod# I
If you have any questions, please feel free to call me at 775-284-1345 or Beth at 775-284-1338.
Sincerely,
�� Marilou Parayno financial Specialist
Cc: Cathy Evans, JOIN, Inc. Cc: Beth Wicks, Nevadaworks
6490 South McCarran Blvd., Building A, Suite I , NV 89509-6119 www.nevadaworks.com 775-337-8600 fax 775-337-9589
Coordinating Workforce Development for Northern Nevada
MONITORING REPORT
Programmatic: _________ Financial ___X_______
Contract Number: YIS-12-JELK-Mod#1, YOS-12-JCAR-Mod#1, and YOS-12-JFAL-Mod#1 Contractor: JOIN Inc. Period of Review: July 2013 to February 2014 Dates: April 2, 3 & 4, 2014 Conducted By: Beth Wicks and Marilou Parayno Contractor Contact(s): Cathy Evans, Finance Manager Entrance Conference: 8:00am, April 2, 2014 Exit Conference: 5:00pm, April 4, 2014
Scope of Monitoring: Financial monitoring to ensure compliance with: Section 184 of the WIA public law requiring proper fiscal control and accounting procedures sufficient to comply with the applicable uniform cost principles included in the appropriate OMB circulars. Section: 5.7 of the WIA State Compliance Policies requiring that expenditures have been made against the correct cost categories and are within the cost limitations specified in the Act. Tools and Documents: JOIN Inc. (Financial Statements, Revenue & Expense Report, Accounting Policies & Procedures, Vendor invoices, Purchase Order/ Requisition Forms, ADP Reports, Client/Staff Payroll Timecards, and General Ledger Reports), Nevadaworks (Contracts, Weekly/Monthly RFF Reports, and Monthly Expenditure Reports), and other miscellaneous documents.
Overview:
Carson JOIN’s Out-of-School Youth Program- For this year, the JOIN office provided youth clients with the following services: Work Readiness Credential, Work Experience Placements, General Educational Development Preparation and Testing, and Employment Preparation Workshops in order to attain employment.
Elko JOIN’s In-School Youth Program- JOIN Elko’s current YIS Program is an ongoing Year Round Youth Program. As an ongoing program, new enrollees are added periodically throughout the year. Incentives were added for Leadership Development Workshop completion and for attainment of high school diploma.
Fallon/Fernley JOIN’s Out-of-School Youth Program- The objective is to help Youth Out-of-School clients to get a GED in order to attain employment.
Observations:
As of February 28, 2014, the Carson Youth Out of School Contract was 50.80% expended at 66.67% through the contract period. Youth funds are normally expended after the completion of the GED. Expenditures incurred include test fee, incentive, training, support services, etc. Consequently, there are more expenditures during the March to June timeframe.
As of February 28, 2014, the Elko Youth-In School Contract was 56.56% expended at 66.67% through the contract period. The majority of Elko In-School Youth funds expended were on Workshops/Fees/Instructor, Work Experience, and Training/Workshop Materials. Youth clients were provided with various workshops such as Work Readiness skills, Becoming the Best Me, Be Successful at Work, Work Smarts, Life Skill, Communication and Listening, and more.
In addition to a full time Branch Manager and a full time Program Specialist II, the Elko office has added a part time Program Specialist II. The additional staff is responsible for facilitating the Elko JOIN in-School Youth program.
As of February 28, 2014, the Fallon/Fernley Youth Out of School Contract was 41.92% expended at 66.67% through
the contract period. The registrant line item was underspent; the goal is to have 10 clients in Work Experience but only 3 youth clients were placed. The Fallon/Fernley office continued to have a challenge finding worksites for Work Experience in the Fernley area. In Fallon, there were several worksites available but they have not seen an increase in local business hiring youth.
The majority of Fallon/Fernley’s Out-of-School Youth funds expended were on Support Services, Work Experience, and
Incentives for successful completion of CASAS, and Employability Skills Workshop.
The months of August and October were chosen to review in detail for the staff payroll. The timecard hours and the salary paid from the ADP report matched the Labor distribution worksheet that is the basis for all the allocations. Labor costs were allocated based on gross labor costs by employee, branch office, and program.
A sample of the clients’ payroll was reviewed for completed timecards, payroll report documentation, and proper recording into the accounting system. The timecards were found to have authorized signatures by the client, site supervisor, or case manager. The months of July through November were chosen to review in detail.
A sampling of various vendor payments such as invoices, requisitions, and check copies were reviewed for proper
documentation, correct reporting in the accounting system. The payments were documented with proper backup such as requisition each signed by both the JOIN Case manager and Branch Manager, Purchase Order, and receipt from the vendor. Examples of items reviewed are transportation assistance, fees required for classes, workshop materials, incentives for completion of Work Experience, CASAS testing, GED, and supportive assistance for utilities and transportation.
An error found while reviewing the general ledger before the monitoring visit, a Fallon Youth WEX payment was posted
to the tuitions expense account and an Elko Youth materials payment was posted to the Assessments expense account. Cathy was able to make the correction that same day and provided us with a journal entry copy. Other than that, the general ledger totals matched the Excel worksheets and balanced to the monthly expenditure reports for each contract for the months of July 2013 through February 2014.
The Cost Pool Fund for the Carson, Elko, and Fallon branches were chosen to review. Samplings of the documents for
various accounts were pulled for review. The payments were all recorded correctly in the JOIN accounting system with the appropriate backup. Examples of items reviewed were office supplies, life insurance, membership dues, professional services, computer repair and maintenance, building or equipment leases, utility expense, staff travel expense, postage expense, and other personnel expense.
All Allocation Cost for the regular staff and Admin transfer were verified with the General Ledger Report and all the branches labor distribution hours and percentage matched the Journal Entry backup. The Operations Allocation was verified in the Cost Pool Report, Operations Distribution reporting by branch and program, and all the entries matched the backup on the Journal Entry.
Minimal errors were found while reviewing the Cost Pool samplings. Computer lab expenses were posted to staff travel,
cleaning supplies expenses were posted to staff travel, and an Ely expense was posted to Elko branch. Cathy was able to fix it that same day and provided us with a journal entry copy.
A copy of the JOIN Accounting Policies and Procedures was reviewed. There are no changes. Corrective Action(s): None. Commendations: Thanks to Cathy and her staff for their time during our monitoring visit. All the sampling documents were ready for our review upon our arrival. Cathy also provided us with an updated JOIN Master Contact List.
Page 1 of 3
Programmatic: __ Financial
Contract Number: AD-12-GBC Mod 1
Contractor: Great Basin College (GBC)
Period of Review: July 1, 2013 to February 28, 2014
Monitor Date(s): Desk Monitoring April 22, 2014
Conducted By: Sherri Lindloff,
Finance Specialist
Contractor Contact(s): Mark Curtis,
President
Jeannie Bailey,
Grants Director
Entrance Conference: None
Exit Conference: None
Scope of Monitoring:
Financial monitoring to ensure compliance with:
Section 184 of the WIA public law requiring proper fiscal control and accounting procedures
sufficient to comply with the applicable uniform cost principles included in the appropriate OMB
circulars.
Section: 5.7 of the WIA State Compliance Policies requiring that expenditures have been made
against the correct cost categories and are within the cost limitations specified in the Act.
Page 2 of 3
Tools and Documents:
GBC Qualification Packet, monthly Request for Funds (RFF), Department Purchase Orders
(DPO), invoices and receipts, Personnel Activity Reports (PARs), Payroll History Report’s,
proof of payments, journal vouchers, general ledger detail reports, excel worksheets, and
other miscellaneous documents were reviewed while monitoring the Great Basin College
program.
The GBC program monitoring encompassed a detailed review of personnel, operating,
registrant and indirect costs for contract expenditures that occurred from July 1, 2013
through February 28, 2014.
Observations:
The Great Basin College (GBC) program offers Healthcare training for up to 25 WIA
qualified under-employed and unemployed adults in Certified Nursing Assistant (CNA),
CNA plus Phlebotomy and CNA plus Substance Abuse Fundamentals. Additional training is
available for increasing employability skills through courses such as Human Relations for
Employment and Computer Office Technology. The location of the services are primarily in
Elko, however training will also occur in Winnemucca and Battle Mountain. This program
provides training in the Governor’s Workforce Board’s Health Care and Medical Services
Sector.
GBC follows the Nevada System of Higher Education (NHSE) accounting and check writing
and Payroll policies and procedures. Great Basin College uses the Advantage accounting
system for both accounts payable and purchasing, which is used throughout the Nevada
System of Higher Education (NSHE) system. The purchasing transactions, such as
processing of requisitions (RXs) and purchase orders (POs) are done in Advantage through
the NSHE Business Center North located in Reno. GBC inputs invoices, etc. in the accounts
payable system and prints accounts payable checks.
HRMS is used throughout NSHE for payroll processing. GBC’s Human Resources
department does the data entry into the HRMS system and then the NSHE Business Center
North runs payroll (gross to net) and prints the payroll checks and manages the direct
deposits for employees.
Vendor reimbursements were reviewed on a monthly basis and are in accordance with WIA
regulations and NSHE policies and procedures. The expenditures were recorded correctly in
the accounting system as evidenced on the monthly Balance and Activity reports
(NSHE’s general ledger reports) and tracked to the RFF and backup provided including
invoices and/or receipts, Department Purchase Orders (DPO’s), proof of payment and journal
entries (when required by NHSE).
General Ledger detail report was reviewed for the period July 1, 2013 through
February 28, 2014 and reconciled to the RFF’s as of that time period with no variance.
Page 3 of 3
As of February 28, 2014 the program is 47% expended with 67% of the contract
completed. The program is under spent in all areas of the budget. Specifically the registrant
costs were significantly underspent due to a delay in the Student Accounts department billing
several clients’ tuition costs, and the program contracted to enroll 25 new clients but have
only been able to enroll 13 new clients as of February 2014. The contractor anticipates the
contract to be underspent by approximately $12,000.
Personnel charged to the program are salaried employees and do not require time cards.
Personnel Activity Reports (PARs) and Payroll History Reports are provided monthly as
back up to payroll. The expenditures are charged correctly as evidenced on the B & A detail
report and reconcile to the RFF. The contractor maintains a Client Tracking spreadsheet
which reports client expenditures by client and reconciles back to the RFF on a monthly
basis. All participants are enrolled in the NJCOS reporting system and all enrollments were
prior to participants receiving services.
Grant Thornton issued a Single Audit Report November 4, 2013 for Nevada System of
Higher Education (NSHE) as of June 30, 2013, including an A-133 Report.
o The audit did not identify any deficiencies in internal controls over financial
reporting, and Grant Thornton issued an unqualified opinion for the Financial
Statements.
o However, material weaknesses were identified in internal controls over compliance of
major programs. Grant Thornton issued a qualified opinion for internal controls over
Student Financial Aid and Research & Development, and reported the Findings in
accordance with section 510(a) of Circular A-133. There were no reportable
Findings related to WIA funding.
The Department of Health & Human Services Negotiation Agreement was reviewed. The
agreement determines the percentage of Indirect Cost that GBC can charge for each type of
contract. GBC is approved to charge 38% of direct salaries and wages including vacation,
holiday and sick pay, but excludes all other fringe benefits. As of month end February 2014
the program had charged 42% for Indirect Costs. A correcting entry was made to the 3/14
RFF which brought the cumulative Indirect Cost charge to 38%. As of the writing of this
report the cumulative Indirect Costs have been correctly charged to the program at 38%.
Revenue recognition at GBC is accounted for on a modified accrual basis, therefore program
revenue is recognizes when they become available and measurable. In the case of WIA
program income, revenue is recognized when the payment for the RFF is received and
generally runs one month behind the billing.
Corrective Action(s): NONE
Commendations:
Thank you to Jeannie Bailey for another year of excellent record keeping and for responding
promptly when issue arose. It is a pleasure working with you and I look forward to working
with you for the remainder of the program.
April 15. 2014
Cathy Pas chane National Career Skills Institute 3100 Mill Street. Ste 100 Reno. NV 89502
�
lJl)@�@cQ]@works Coordina tin g Worklorce Development lor Norrher" Nevad,
Re: Financial Monitoring Visit - March 28. 2014
Dear Cathy.
Please find the enclosed Financial Monitoring Report for Contract:
AD-12-NCSIEL-Mod#2 AD-12-NCSIHC-Mod# I
If you have any questions. please feel free to call me at 775-284-1345.
Marilou Parayno Financial Specialist
Cc: David Scott. National Career Skills Institute Cc: Beth Wicks. Nevadaworks
6490 South McCarran Blvd .• Building A. Suite I. NV 89509-6119 www.nevadaworks.com 775-337-8600 Fax 775-337-9589
. _ _ ._--- ------ -- --------
Coordinating Workforce Development for Northern Nevada
MONITORING REPORT
Programmatic: _________ Financial ___X_______
Contract Number: AD-12-NCSIEL-Mod#1 and AD-12-NCSIHC-Mod#2 Contractor: National Career Skills Institute Period of Review: July 2013 to February 2014 Date: March 28, 2014 Conducted By: Marilou Parayno Contractor Contact(s): Cathy Paschane-Executive Director, David Scott-Office Manager/Bookkeeper, Entrance Conference: 1:00pm, March 28, 2014 Exit Conference: 5:00pm, March 28, 2014
Scope of Monitoring: Financial monitoring to ensure compliance with: Section 184 of the WIA public law requiring proper fiscal control and accounting procedures sufficient to comply with the applicable uniform cost principles included in the appropriate OMB circulars. Section: 5.7 of the WIA State Compliance Policies requiring that expenditures have been made against the correct cost categories and are within the cost limitations specified in the Act. Tools and Documents: NCSI (Revenue & Expense Report, Vendor invoices, Payroll Taxes Records, Client/Staff Payroll Timecards, and Bank Reconciliation), Nevadaworks (Contracts, Weekly/Monthly RFF Reports, and Monthly Expenditure Reports), and other miscellaneous documents.
Overview:
The Nevadaworks program covered the Healthcare Billing and Coding Program and the Electrical Instrumentation Technicians Program.
National Career Skills Institute (NCSI) Electrical Instrumentation Technician (EIT) program is a renewal for 10 new students with 870 hours of EIT training. To complete the EIT training course each client has to attain three certifications as follows: Industrial Electrical Technology (IET), Industrial Instrumentation Technology (IIT), and the Industrial Mechanical Technology (IMT).
National Career Skills Institute (NCSI) Healthcare Billing and Coding Program is a contract modification to closeout the current client list. No new clients are allowed to be enrolled in the program.
Observations:
Current Workers Compensation and General Liability Insurance Certificates are on file at Nevadaworks.
All timecards were signed by the employee and then submitted to the Executive Director for signature approval. The Office Manager reviewed the hours for each employee and printed the checks. Every employee completed a Grant Time Keeping form that showed his or her labor distribution to various grants. Both the employee and the Executive Director initialed on this form.
Timecards, payroll check copies, payroll reports, Grant Keeping forms, and a Profit and Loss by Class for all non-exempt
employees are reported to Nevadaworks and submitted monthly with the Request for Funds for each grant.
Profit and Loss by Class detail reports for both programs were reviewed as of February 28, 2014 and the following was noted for each program:
o AD-12-NCSIEL-Mod#2- The Profit and Loss by Class report reconciled to the RFF as submitted on a monthly
basis. A monthly payroll report is generated to match the RFF as the payroll is processed “in-house.”
o AD-12-NCSIHC-Mod#1- The Profit and Loss by Class report reconciled to the RFF as submitted on a monthly basis. A monthly payroll report is generated to match the RFF as the payroll is processed “in-house.”
All clients for both EIT and HCB Adult programs were properly enrolled in the NJCOS system.
As of February 28, 2014, the Healthcare Billing and Coding Adult program was 20.11% expended at 66.67% through the contract period. Although this program is under expended, it is fine since this is a closeout to the current client list that has not completed the program successfully. The staff are still trying to make direct contact and there were 9 clients out of 12 that were unable to locate.
As of February 28, 2014, the Electrical Instrumentation Technicians Adult program was 83.24% expended at 66.67%
through the contract period. They were 16.57% over expended due to the additional hours of training and certifications for the EIT course completion. These were needed for the clients to complete the program successfully.
Financial Statements and the Revenue & Expense Report were reviewed in detail. The month of February 2014 was chosen to review in detail on Payroll Taxes Records. The hours, salary rate, and withholdings such as Federal, Social Security, and Medicare were recorded correctly in the accounting system. Documentation of the Payroll Taxes Records were recorded to QuickBooks system.
Bank Reconciliations for both EIT and NCSI are completed monthly and are submitted with the Request for Funds. The
Bank Reconciliation report as of 02/28/14 showed unreconciled or uncleared transactions, the oldest was from December 2011, July, August, October, and December 2012. The Accounting Manager fixed all the unreconciled or uncleared transactions on March 31, 2014.
All vendor documents such as invoices, receipts, and check copies were reviewed monthly for proper documentation and correct reporting in the accounting system. Examples of items reviewed were tuition, rent expense, textbooks; clients travel expenses, instructor travel expenses, staff travel expenses, and training and workshop materials.
Corrective Action(s):
1.) Please provide Nevadaworks with written documentation on when bank reconciling items will be reviewed and action taken to clear. At a minimum of twice a year. (Per NRS 120A, a holder of abandoned property must attempt to locate the rightful owner before remitting the property to the state.)
Please submit the required document to Nevadaworks, 6490 S. McCarran Blvd., Bldg. A-1, Reno, NV 89509 or by email to [email protected] by April 25, 2014.
Commendations: Thank you to Cathy Paschane and David Scott for your time during my monitoring visit.
Programmatic: __ Financial
Contract Number: AD-12-RH Mod1
Contractor: Ridge House, Inc.
Period of Review: July 1, 2013 to April 30, 2014
Monitor Date(s): Desk Monitoring May 29, 2013
Conducted By: Sherri Lindloff
Finance Specialist
Contractor Contact(s): Steven Burt
Executive Director
Linda Merlin
Controller
Entrance Conference: None
Exit Conference: None
Scope of Monitoring:
Financial monitoring to ensure compliance with:
Section 184 of the WIA public law requiring proper fiscal control and accounting procedures
sufficient to comply with the applicable uniform cost principles included in the appropriate OMB
circulars.
Section: 5.7 of the WIA State Compliance Policies requiring that expenditures have been made
against the correct cost categories and are within the cost limitations specified in the Act.
Tools and Documents:
The Ridge House Contractor Qualification Packet, monthly Request for Funds (RFF), profit and loss statements, invoices, proof of payment, payroll time cards, copies of payroll checks, Excel
worksheets, and other miscellaneous documents were reviewed.
The Ridge House Program Evaluation encompassed a review of program expenditures from July 1, 2013 through April, 30 2014. The contractor provides back up to monthly expenditures
throughout the contract.
Observations:
Ridge House serves the ex-offender, re-entry Adult population. Ridge House clients are recently released from prison, often arriving at their offices the same day as release. Not
only do these clients lack basic job search skills, they typically have limited work
experience, possess low levels of vocational skills, and also require assistance with
transportation and housing, which this program assists them in obtaining. This program
provides job readiness and employability workshops, job placement assistance,
supportive services, work experience and on-the-job training. As an additional resource
for assistance in obtaining employment Career Resources Fairs are held which bring
together unemployed re-entry clients, local employer and service agencies. This program
makes training available in several of the Governors’ Workforce Board’s including
Aerospace, IT, Logistics, Manufacturing, Mining and Tourism Sectors.
As of month end April 2014 the Ridge House program percentage of contract completed was 83% and the percentage of the contract funds expended was 81%. Based on the run
rate of expenditures it appears that this program will be close to fully spent by the end of
the contract.
Backup was provided for employee wages submitted for reimbursement to include time cards, and proof of payment. The time cards specify the number of hours daily each
person works on the program and include employee and supervisor signatures. Hourly
employees’ time cards are reviewed for appropriate time allocation, employee signature
and approval. A copy of the payroll checks are provided with each RFF which
documents the gross bimonthly wages for salaried employees and hours worked, rate of
pay and gross salary for hourly employees. The paycheck also lists the payroll period,
taxes and deductions, net wages paid and the check number or auto deposit number..
A payroll reconciliation is provided with each RFF which verifies the hours worked,
wage rate, payroll taxes and benefits charged to the program. This information reconciles
to the accounting system as evidenced in the Profit & Loss Statement and billed correctly
through to the RFF.
The general ledger detail report reconciled to the YTD Request for Funds expenditures as of April 2014.
Vendor payments were reviewed monthly for proper documentation and correct reporting in the accounting system. The payments were documented with invoice copies or
receipts from the vendor and proof of payment. The expenditures were recorded
correctly in the accounting system, verified on the P & L statement and tracked to the
correct budget category in the RFF.
Client cost reimbursement requests occurred after the clients were funded in NJCOS. Client participation in work experience and on the job training was reviewed for
completed time cards and proof of payment to the client. The time cards were reviewed
for hours worked, and when required by the employer the client/employee and supervisor
signatures. Several of the employers are on automated payroll systems that do not
require physical signature from the client or supervisor. In these cases the client reviews
the time worked in the time keeping system and when correct sends it to the supervisor.
At that point the supervisor reviews the hours worked and when correct sends it on to the
Payroll Department for payment.
The December 2013 annual payroll tax return form 941 and proof of payment for those
months were reviewed and found to be complete and paid in a timely manner.
Bank reconciliations are performed by the Controller using QuickBooks software on a
monthly basis. The reconciliations for December 2013 and March 2014 were performed
in a timely manner and reconciled back to the general ledger.
Last year the Financial Monitoring recommend that RH clear up 2 items from the
“Uncleared Transactions” section of the bank reconciliations; a Y/E closing entry from
6/30/10 for $176.10 and a check to Nevada Secretary of State from 7/31/12 for $25.00,
but noted that these items were not related to the WIA program and were immaterial in
value.
These items are still on the bank reconciliations reviewed this year. Ridge House
addressed these items with their auditor Barnard Vogler & Co. and was instructed not to
change either item, they were from a prior period, did not involve the WIA program, and
they were not material.
A copy of the Fiscal Policies and Procedures were provided and reviewed. The
procedures should provide management and readers of RH financial reporting with
reasonable assurance that resources are being safeguarded and accounted for
appropriately. Based on the financial documents reviewed the procedures are being
followed.
RH uses Quickbooks Premier Non-Profit Edition 2013 for payroll, Accounts Payable and purchasing.
The methodology used to allocate expenditures that are not charged at 100% to the program is based on the percentage of WIA clients verses Non WIA clients served in a
given month and averaged over the previous three month period. The calculation is
provided on a monthly bases and the months reviewed were correct.
Based on the allocation methodology above, As of April 2014, the allowable indirect cost rate was 26.18%. Ridge House charged Indirect Costs at 22.84% well within the
allowable percentage.
Corrective Action(s):
NONE
Commendation(s):
Linda, thank you for the professional manner in which you report the financial activity
for this program. The excellent record keeping and prompt response to questions and
issues is appreciated. It has been a pleasure working with you and I look forward to
working with you next year.
Programmatic: __ Financial
Contract Number: AD-12-TMCCGT Mod1, AD-12-TMCCDA Mod1
and YOS-13-TMCC
Contractor: Truckee Meadows Community College (TMCC)
Period of Review: July 1, 2013 through December 31, 2013
Monitor Date(s): Desk Monitoring, January 31, 2013
Conducted By: Sherri Lindloff, Finance Specialist
Contractor Contact(s): Fred Egenberger, Director, Budget and Planning
Paula Lee Hobson, Executive Director, Institutional Advancement
Karen Adams, Grants and Contracts Analyst I
Norma Jean Velasquez-Bryant, Ph.D., Geothermal Program Director
Julie Muhle, Dental Assisting Program Coordinator
Adriana Lopez, Success First Case Manager
Entrance Conference: None
Exit Conference: None
Scope of Monitoring:
Financial monitoring to ensure compliance with:
Section 184 of the WIA public law requiring proper fiscal control and accounting procedures
sufficient to comply with the applicable uniform cost principles included in the appropriate OMB
circulars.
Section: 5.7 of the WIA State Compliance Policies requiring that expenditures have been made
against the correct cost categories and are within the cost limitations specified in the Act.
Tools and Documents:
TMCC Qualification Packet, monthly Request for Funds (RFF), Balance and Activity
Reports (P&L), General Journal Vouchers, Department Purchase Orders (DPO’s),
Instructor Letter of Appointment (LOA’s), Payroll Action Forms (PAF’s), Excel
worksheets, and other miscellaneous documents were reviewed.
Observations:
Dental Assisting (DA) Program: This is an Adult program run by Truckee Meadows Community College for the training of a cohort of six students in the established Dental
Assisting program. Upon completion of this full-time, ten-month academic program,
students will earn a certificate of completion and are eligible to take the Dental Assisting
National Board examination to become a Certified Dental Assistant and seek
employment in the dental health field. This program provides training in the Governor’s
Workforce Investment Board’s Health Care and Medical Services Sector.
Geothermal (GT) Program: This is an Adult program that provides geothermal plant operator (GPO) training for 20 clients. The Clients are to complete a 34 credit Certificate
of Training (COA), which would give them the necessary skills set to obtain employment
in the geothermal power industry. The program provides training in the Governor’s
Workforce Investment Board’s Clean Energy Sector and serves low income Adults it the
Northern Nevada area.
Success First Program: The purpose of the Success First Program is to increase the college readiness, persistence, retention and graduation rates of first-time, first-
generation, low-income out of school youth at TMCC, so that they may obtain a college
degree or certification, and improve their ability to find and keep employment. The
students targeted for this program are underprepared for college and require special
assistance in completing their college education..
As of December 31, 2013 the TMCC DA, GT and Success First Programs are 41%, 44%
and 51% expended respectively with 50% of the contract completed.
- The DA program is underspent in all areas of the budget with Personnel and
Indirect Costs at 41% spent and Registrant costs at 34% spent. The budget lines
specifically underspent is Supportive Services at only 3% spent.
- The GT program is underspent by 6% evenly over the budget line items at 44%
spent overall.
- The Success First Program is right on track and it appears that this contract will
be fully spent by the end of the contract year.
Staff wages charged to the grant were found to be accurate and had proper backup documentation, including LOA’s and PAF’s when required, attached to each monthly
RFF.
Grant Thornton issued a Single Audit Report November 4, 2013 for Nevada System of
Higher Education (NSHE) as of June 30, 2013, including an A-133 Report.
o The audit did not identify any deficiencies in internal controls over financial
reporting, and Grant Thornton issued an unqualified opinion for the Financial
Statements.
o However, material weaknesses were identified in internal controls over
compliance of major programs. Grant Thornton issued a qualified opinion for
internal controls over Student Financial Aid and Research & Development, and
reported the Findings in accordance with section 510(a) of Circular A-133. There
were no reportable Findings related to WIA funding.
All vendor expenditures billed to the program were reviewed for proper documentation to
include copies of invoices or receipts, were recorded correctly in the TMCC accounting
system, and were tracked through the detailed Balance and Activity Report and to the
RFF.
Contractors are required to enroll new clients and “fund” services in NJCOS within 10 days of the client passing eligibility and acceptance into the program as well as funding
services being provided. Data entry for client enrollment and funding of services was
sometimes 2 ½ months late in being entered for the Dental Assisting program. Client
program activity cannot be reviewed if the clients are not enrolled and services are not
funded. As of this monitoring, participants in all three programs are properly entered and
funded in NJCOS.
The client Comments in NJCOS are to include the cost of the services provided to clients in WIA programs, but neither the DA or GT program included this information in their
client Comments. Also, several months of comments are missing from the client files for
both programs. Client program activity and expenditures cannot be reviewed if the
services for clients are not entered into NJCOS.
There was a delay in the billing for Tuition costs for both the DA and the GT programs.
The Fall Semester should have been billed to the program in August 2013, but was not
billed until October 2013 for the GT program and not until November 2013 for the DA
program.
During the review of the general ledger detail report a description of “wrong account”
was noted on 82% of the Registrant costs for the GT program and 97% of the Registrant
costs for the DA program. If this percentage of costs were posted to incorrect accounts it
may have contributed to the delay in posting expenditures.
TMCC has a federally negotiated Indirect Cost rate of 33.5% (11.79% administration and 21.71% facilities) for these types of grants. All three of the TMCC contracts requested
the administrative percentage of 11.79% for reimbursement by the program. As of this
monitoring, the Indirect Cost percentage applied to the programs followed the contract
and the negotiated rate.
The YTD program expenditures as of December 2013 reconciled to the YTD general
ledger detail report for the DA and Success First programs with no variances. The GT
program had a $160.00 variance between expenditures billed to the program and the YTD
general ledger detail report. This was found by the contractor and corrected with the
January 2014 RFF.
TMCC posts their revenue on a cash basis when payments are received. Therefore, the revenue will not show as 100% recognized until the final payment is received from
Nevadaworks at the conclusion of the program.
The financial accounting system used by TMCC is a mainframe system maintained by the NSHE. The”Advantage” financial software system used by NSHE is designed to
support non-profit organizations.
Recommendations(s):
The Dental Assisting and Geothermal programs need to communicate more effectively with Financial Aid to insure that Registrant costs are posted to the programs in a timely
manner.
The Dental Assisting program needs to commit to entering enrollment data into NJCOS
within 10 days of client clearing eligibility and acceptance into the program.
Nevadaworks understands that there can be issues with accessing the NJCOS system but
have made every effort to accommodate this by opening up the computer training room at
the Nevadaworks office so that contractors may do the necessary input.
Both the Dental Assisting and Geothermal programs need to commit to entering comments into NJCOS concerning the client’s activity in the program, along with noting
the dollar amount of the cost associated with the services provided, on a monthly basis.
Corrective Action(s):
NONE
Commendations:
Thank you to Karen Adams, Controllers Office, for filing the Requests for Funds on time
each month, as well as responding promptly when issues arose with the reporting.
Adriana Lopez, Success First, did a stellar job communicating with the Financial Aid department at TMCC so that program expenditures for the Registrant costs could be
billed in a timely manner. She also did an excellent job documenting in NJCOS
Comments tab the client activities along with the costs associated with those activities.
Thank you.
Programmatic: __ Financial
Contract Number: AD-13-CASAT and DW-13-CASAT
Contractor: University of Nevada Reno (UNR), Center for the Application of
Substance Abuse Technologies (CASAT)
Period of Review: July 1, 2013 to December 31, 2013
Monitor Date(s): Desk Monitoring starting February 14, 2014
Conducted By: Sherri Lindloff, Finance Specialist
Contractor Contact(s): Nancy Roget, Executive Director
Terra Hamblin, Project Manager
Annie Vicente, Fiscal Manager
Elaine Spiess, Grants & Projects Analyst
Entrance Conference: Desk Monitoring
Exit Conference: Desk Monitoring
Scope of Monitoring:
Financial monitoring to ensure compliance with:
Section 184 of the WIA public law requiring proper fiscal control and accounting procedures
sufficient to comply with the applicable uniform cost principles included in the appropriate OMB
circulars.
Section: 5.7 of the WIA State Compliance Policies requiring that expenditures have been made
against the correct cost categories and are within the cost limitations specified in the Act.
Tools and Documents:
The Nevada System of Higher Education (NHSE)/UNR Qualification Packet, monthly Request for Funds (RFF) reports, Internal Purchase Orders (IPO), invoices, excel
worksheets, journal vouchers, Balance and Activity (B&A) reports (general ledger), Joint
Together Northern Nevada (JTNN) sub-contract, Payroll Expense Detail reports, and other
miscellaneous documents were reviewed while monitoring the two programs.
The AD and DW program monitoring’s encompassed detailed review of personnel, operating and registrant costs for contract expenditures that occurred from July 1, 2013 to
December 31, 2013.
Observations:
The overall goal of the Peer Recovery Specialist Project for Dislocated Workers and Adults funding is to build and strengthen the behavioral health workforce and expand its
career entry tracks into the profession. The program will increase the number of
individuals working in the behavioral health field by providing access to a career entry
track available through the Peer Recovery Specialist-Recovery (PSS-R) Certificate and
the Peer Recovery Specialist-Veteran (PSS-V) Certificate. This program provides
training in the Governor’s Workforce Board’s Health Care and Medical Services Sector.
As of December 31, 2013 the AD and DW programs had both expended 29% of the total
budgets with 50% of the contract completed. All budget categories are being utilized,
but the Registrant Cost category are lagging further behind the other cost categories. It is
expected that the contracts will not be fully expended by June 30, 2014.
As of the 12/13 RFF there has been no billing for client participation in work experience therefore Client payroll was not reviewed.
The programs are contracted to enroll 14 new clients cumulatively and as if this monitoring they currently have 14 clients receiving services. The clients were enrolled in
NJCOS and all enrollments were prior to participants receiving services. The contractor
maintains a Client Tracking, which includes all relevant data concerning the client as well
as monthly Registrant costs, for both contracts. The Client Trackers are submitted
monthly and as of 12/31/13 reconciled to the B&A report and the RFF.
UNR salaried employees complete a Payroll Action Forms (PAF) on a monthly basis
which indicates the percentage of time and wage charged for each program worked by the
employee. Monthly the PAF is reconciled to the Payroll Expense Detail by Employee
report, the B&A report and the Personnel Costs billed to the program on the RFF.
UNR follows NHSE accounting policies and procedures as well as NHSE check writing
procedures and uses the Advantage accounting system.
On a monthly basis all vendor reimbursement requests are reviewed for proper documentation to include invoices, receipts, request for payment, Internal Purchase Order
(IPO’s), Participant Support Payment Request Forms, Credit Card Statements, UNR
Scholarship/Fellowship Requests and/or journal vouchers in accordance with NHSE
policies and procedures. The expenditures were recorded correctly in the accounting
system as evidenced on the Detailed B&A report and tracked to the correct category in
the Request for Funds.
Revenue recognition at UNR is accounted for on a cash basis, therefore Program revenue is posted when payment is received. In the case of WIA program income, revenue is
recognized when the payment for the RFF is received and generally runs one month
behind the billing.
The Joint Together Northern Nevada (JTNN) agreement was reviewed and the expenditures billed to the program followed the sub-contract.
Grant Thornton issued a Single Audit Report November 4, 2013 for Nevada System of
Higher Education (NSHE) as of June 30, 2013, including an A-133 Report.
o The audit did not identify any deficiencies in internal controls over financial
reporting, and Grant Thornton issued an unqualified opinion for the Financial
Statements.
o However, material weaknesses were identified in internal controls over
compliance of major programs. Grant Thornton issued a qualified opinion for
internal controls over Student Financial Aid and Research & Development, and
reported the Findings in accordance with section 510(a) of Circular A-133. There
were no reportable Findings related to WIA funding.
UNR has a federally negotiated Indirect Cost rate of 31.00%. As of this monitoring the Indirect Cost percentage applied to the program followed the negotiated rate and the
program contract.
Corrective Action(s):
NONE
Commendations:
Thank you to Julius Real, Fiscal Coordinator, and Elaine Spiess, Grants & Project Analyst, for excellent financial record keeping and reporting and prompt and professional
response to questions and issues.
Thank you also to Terra Hamblin, she is prompt and professional when program issues arise and responds in a timely manner.