FAC Explorer

Audit 292190

FY End
2023-06-30
Total Expended
$7.17M
Findings
2
Programs
3
Organization: Local Area Workforce Development-North Central (PR)
Year: 2023 Accepted: 2024-02-26
Auditor: Ortiz Rivera Rivera & CO LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
370523 2023-001 Significant Deficiency Yes G
946965 2023-001 Significant Deficiency Yes G

Programs

ALN Program Spent Major Findings
17.259 Wia Youth Activities $2.54M Yes 1
17.278 Wia Dislocated Worker Formula Grants $2.44M Yes 0
17.258 Wia Adult Program $2.19M Yes 0

Contacts

Name Title Type
VDF9UMZNJCC5 Sheila Velez Auditee
7878794483 CPA Marco A. Rivera Auditor
No contacts on file

Notes to SEFA

Title: 1. BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Local Area has elected not to use the ten percent of the minimus indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of the Local Area under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this Schedule may differ from the amounts presented in, or used in the preparation of, the basic financial statements. Because the Schedule presents only a selected portion of the operations of the Local Area, it is not intended to and does not present the financial position and changes in net position of the Local Area.
Title: 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Local Area has elected not to use the ten percent of the minimus indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Assistance Listing Number is a program identification number. The first two digits identify the federal department or agency that administers the program, and the last three numbers are assigned by numerical sequence. State or local government redistributions of federal awards to the Local Area, known as “pass–through awards”, should be treated by the Local Area as though they were received directly from the federal government. The Uniform Guidance requires the schedule to include the name of the pass-through entity and the identifying number assigned by the pass-through entity for the federal awards received as a sub recipient. Numbers identified as N/A are not applicable and numbers identified as N/AV are not available.

Finding Details

Finding 2023-001
Condition Per audit procedures performed over the WIOA Youth Activities, it was noted of the total program expenses spent on the Youth Activities, 14.74% was spent on paid and unpaid work experiences. Per audit procedures performed over the WIOA Youth Activities, it was noted of the total program expenses spent on the Youth Activities, 14.74% 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 2023-001
Condition Per audit procedures performed over the WIOA Youth Activities, it was noted of the total program expenses spent on the Youth Activities, 14.74% was spent on paid and unpaid work experiences. Per audit procedures performed over the WIOA Youth Activities, it was noted of the total program expenses spent on the Youth Activities, 14.74% 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