FAC Explorer

Audit 17181

FY End
2022-06-30
Total Expended
$7.99M
Findings
2
Programs
3
Organization: Local Area Workforce Development-North Central (PR)
Year: 2022 Accepted: 2022-12-20
Auditor: Ortiz Rivera Rivera & CO LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
12533 2022-001 Significant Deficiency Yes G
588975 2022-001 Significant Deficiency Yes G

Programs

ALN Program Spent Major Findings
17.278 Wia Dislocated Worker Formula Grants $3.72M Yes 0
17.258 Wia Adult Program $2.64M Yes 0
17.259 Wia Youth Activities $1.64M Yes 1

Contacts

Name Title Type
VDF9UMZNJCC5 Sheila Velez Auditee
7878793095 CPA Marco A. Rivera Auditor
No contacts on file

Notes to SEFA

Accounting Policies: 1. BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule)includes the federal award activity of the Local Area under programs of the federalgovernment for the year ended June 30, 2022. The information in this Schedule ispresented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Therefore, some amountspresented in this Schedule may differ from the amounts presented in, or used in thepreparation of, the basic financial statements. Because the Schedule presents only aselected portion of the operations of the Local Area, it is not intended to and does notpresent the financial position and changes in net position of the Local Area.2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the modified accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained inthe Uniform Guidance, wherein certain types of expenditures are not allowable or arelimited as to reimbursement.The Assistance Listing Number is a program identification number. The first two digitsidentify the federal department or agency that administers the program, and the last threenumbers are assigned by numerical sequence.State or local government redistributions of federal awards to the Local Area, known aspassthrough awards, should be treated by the Local Area as though they were receiveddirectly from the federal government. The Uniform Guidance requires the schedule toinclude the name of the pass-through entity and the identifying number assigned by thepass-through entity for the federal awards received as a sub recipient. Numbers identifiedas N/A are not applicable and numbers identified as N/AV are not available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
Finding: 2022-001 Federal Agency: United States Department of Labor Pass-through Agency: Puerto Rico Department of Economic Development Federal Program Title: WIOA Youth Activities Assistance Listing Number: 17.259 Compliance Requirement: Matching, Level of Effort, Earmarking Type of Finding: Significant Deficiency in Internal Control Over Compliance (SD) Responsible Official: Samaris A. Tejada Cruz ? Executive Director Prior Year Finding: 2021-001 Condition Per audit procedures performed over the WIOA Youth Activities, it was noted of the total program expenses spent on the Youth Activities, 7.50% was spent on paid and unpaid work experiences. Criteria Per Section 129(c)(4), WIOA, 128 Stat, 1510, not less than 20 percent of Youth Activities funds allocated to the local area, except for the local area expenditures for administration, must be used to provide paid and unpaid work experiences. Cause Cause is due to the lack of total expenditures on Youth Activities for paid and unpaid work experiences not meeting the required 20 percent threshold. Effect The Local Area is out of compliance with the earmarking requirement of the WIOA in that 20 percent of Youth Activity Funds allocated were not expended on paid and unpaid work experiences. Recommendation We recommend the Local Area review the expenditures and perform measures to ensure that earmarking expenditure requirements being met throughout the year for each grant. Questioned Costs None
Finding 2022-001
Finding: 2022-001 Federal Agency: United States Department of Labor Pass-through Agency: Puerto Rico Department of Economic Development Federal Program Title: WIOA Youth Activities Assistance Listing Number: 17.259 Compliance Requirement: Matching, Level of Effort, Earmarking Type of Finding: Significant Deficiency in Internal Control Over Compliance (SD) Responsible Official: Samaris A. Tejada Cruz ? Executive Director Prior Year Finding: 2021-001 Condition Per audit procedures performed over the WIOA Youth Activities, it was noted of the total program expenses spent on the Youth Activities, 7.50% was spent on paid and unpaid work experiences. Criteria Per Section 129(c)(4), WIOA, 128 Stat, 1510, not less than 20 percent of Youth Activities funds allocated to the local area, except for the local area expenditures for administration, must be used to provide paid and unpaid work experiences. Cause Cause is due to the lack of total expenditures on Youth Activities for paid and unpaid work experiences not meeting the required 20 percent threshold. Effect The Local Area is out of compliance with the earmarking requirement of the WIOA in that 20 percent of Youth Activity Funds allocated were not expended on paid and unpaid work experiences. Recommendation We recommend the Local Area review the expenditures and perform measures to ensure that earmarking expenditure requirements being met throughout the year for each grant. Questioned Costs None