Recurring Findings

Employment Development: Recurring Less severe Noncompliance
Federal Program Issue First Year Reported
Department's Assertion Page Number
Trade Adjustment Assistance EDD has not established adequate controls to ensure it uses the appropriate data to prepare the Trade Act Participant Report (TAPR). 2006-07
Fully corrected. The TAPR was incorporated into the Job Training Automation System (JTA) in July 2008. Using the new TAPR/JTA report procedures, the October through December 2008 TAPR report was successfully transmitted to the U.S. Department of Labor in February of 2009. 204
Trade Adjustment Assistance EDD lacks adequate controls to ensure its field offices make appropriate eligibility determinations for the Trade Adjustment Assistance (TAA) program. 2006-07
Fully corrected. On December 22, 2008, the Unemployment Insurance Policy and Coordination Division submitted to Audit & Evaluation a corrective action plan and corresponding documents as confirmation EDD has established appropriate controls and guidelines to ensure its field offices made appropriate determinations for the TAA program. 197
Trade Adjustment Assistance EDD lacks adequate controls to ensure its field offices make appropriate eligibility determinations for the Trade Adjustment Assistance (TAA) program. 2006-07
Fully corrected. On December 22, 2008, the Unemployment Insurance Policy and Coordination Division submitted to Audit & Evaluation a corrective action plan and corresponding documents as confirmation EDD has established appropriate controls and guidelines to ensure its field offices made appropriate determinations for the TAA program. 197
Trade Adjustment Assistance EDD lacks controls to ensure the accuracy of the data in the Employment and Training Administration (ETA-563) report that it submits to the U.S. Department of Labor (Federal Labor). 2006-07
Partially corrected. The Unemployment Insurance Policy and Coordination Division (UIPCD) currently submits the ETA-563 report to Federal Labor. Specifications are currently being developed by the Information Technology Branch (with coordination with the Workforce Services Branch (WSB) Information Technology Services Group) to incorporate the ETA-563 report into the Job Training Automation System (JTA). After the specifications are completed, the WSB will begin to submit the report to the Federal Labor. WSB is scheduled to submit their first report (for the October-December 2009 quarter) to the Federal Labor in February 2010. 203
DVOP (Disabled Veterans' Outreach Program) EDD does not have adequate policies or procedures in place to comply with federal suspension and debarment requirements. Further, EDD does not check the Excluded Parties List System (EPLS) to verify that entities it purchases goods from are not suspended or debarred. 2007-08
Fully corrected. On April 14, 2009, EDD updated the desk procedures for buyers to include querying the EPLS and printing a copy of the results for the procurement file for all purchases over $25,000. The buyers were verbally instructed as to the procedures on February 13, 2009. 200
Employment Services/Wagner-Peyser Funded Activities EDD does not have adequate policies or procedures in place to comply with federal suspension and debarment requirements. Further, EDD does not check the Excluded Parties List System (EPLS) to verify that entities it purchases goods from are not suspended or debarred. 2007-08
Fully corrected. On April 14, 2009, EDD updated the desk procedures for buyers to include querying the EPLS and printing a copy of the results for the procurement file for all purchases over $25,000. The buyers were verbally instructed as to the procedures on February 13, 2009. 200
LVER (Local Veterans' Employment Representative Program) EDD does not have adequate policies or procedures in place to comply with federal suspension and debarment requirements. Further, EDD does not check the Excluded Parties List System (EPLS) to verify that entities it purchases goods from are not suspended or debarred. 2007-08
Fully corrected. On April 14, 2009, EDD updated the desk procedures for buyers to include querying the EPLS and printing a copy of the results for the procurement file for all purchases over $25,000. The buyers were verbally instructed as to the procedures on February 13, 2009. 200
WIA Youth Activities EDDís Compliance Monitoring Section did not conduct reviews of any Community Based Organizations (CBOs) during fiscal year 2007Ė2008. In addition, EDD did not issue the management decision on audit findings within six months after receipt of a subrecipientís audit report. 2007-08
Remains uncorrected/agree with finding. The Compliance Monitoring Section is currently recruiting for staff to conduct monitoring of the CBOs. The EDD does not receive a copy of single audits from the State Controllerís Office (SCO) on a timely basis. As a result, the six month period in which to issue a management decision on audit findings cannot be met in cases where EDD has not received a copy of the audit. To address this issue, EDD attended the Single Audit Conference to discuss and identify options that can be implemented in order to minimize the amount of time it takes for SCO to provide a copy of the audit to EDD. The result was that SCO would try to expedite their single audit certification process and send the audits as soon as possible. The SCO will look at downloading the audits onto their website in order for departments to have quicker access to the audits. Knowing that the time delay is with the SCO, EDD will initiate follow-up calls to SCO to determine the status of an audit. If an audit has been received, EDD will obtain the necessary information on any finding requiring management response from EDD. This will reduce the amount of time between SCO sending the audit and EDD receiving the audit and allow EDD to issue the management response much quicker. 206
Workforce Investment Act Adult Program EDDís Compliance Monitoring Section did not conduct reviews of any Community Based Organizations (CBOs) during fiscal year 2007Ė2008. In addition, EDD did not issue the management decision on audit findings within six months after receipt of a subrecipientís audit report. 2007-08
Remains uncorrected/agree with finding. The Compliance Monitoring Section is currently recruiting for staff to conduct monitoring of the CBOs. The EDD does not receive a copy of single audits from the State Controllerís Office (SCO) on a timely basis. As a result, the six month period in which to issue a management decision on audit findings cannot be met in cases where EDD has not received a copy of the audit. To address this issue, EDD attended the Single Audit Conference to discuss and identify options that can be implemented in order to minimize the amount of time it takes for SCO to provide a copy of the audit to EDD. The result was that SCO would try to expedite their single audit certification process and send the audits as soon as possible. The SCO will look at downloading the audits onto their website in order for departments to have quicker access to the audits. Knowing that the time delay is with the SCO, EDD will initiate follow-up calls to SCO to determine the status of an audit. If an audit has been received, EDD will obtain the necessary information on any finding requiring management response from EDD. This will reduce the amount of time between SCO sending the audit and EDD receiving the audit and allow EDD to issue the management response much quicker. 206
Workforce Investment Act Dislocated Workers EDDís Compliance Monitoring Section did not conduct reviews of any Community Based Organizations (CBOs) during fiscal year 2007Ė2008. In addition, EDD did not issue the management decision on audit findings within six months after receipt of a subrecipientís audit report. 2007-08
Remains uncorrected/agree with finding. The Compliance Monitoring Section is currently recruiting for staff to conduct monitoring of the CBOs. The EDD does not receive a copy of single audits from the State Controllerís Office (SCO) on a timely basis. As a result, the six month period in which to issue a management decision on audit findings cannot be met in cases where EDD has not received a copy of the audit. To address this issue, EDD attended the Single Audit Conference to discuss and identify options that can be implemented in order to minimize the amount of time it takes for SCO to provide a copy of the audit to EDD. The result was that SCO would try to expedite their single audit certification process and send the audits as soon as possible. The SCO will look at downloading the audits onto their website in order for departments to have quicker access to the audits. Knowing that the time delay is with the SCO, EDD will initiate follow-up calls to SCO to determine the status of an audit. If an audit has been received, EDD will obtain the necessary information on any finding requiring management response from EDD. This will reduce the amount of time between SCO sending the audit and EDD receiving the audit and allow EDD to issue the management response much quicker. 206
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