FAC Explorer

Audit 34840

FY End
2022-06-30
Total Expended
$9.62M
Findings
2
Programs
3
Organization: Local Area of Labor Development Southwest (PR)
Year: 2022 Accepted: 2023-03-05
Auditor: Ortiz Rivera Rivera & CO LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
38398 2022-001 Significant Deficiency Yes G
614840 2022-001 Significant Deficiency Yes G

Programs

ALN Program Spent Major Findings
17.278 Wia Dislocated Worker Formula Grants $4.59M Yes 0
17.258 Wia Adult Program $2.96M Yes 0
17.259 Wia Youth Activities $2.06M Yes 1

Contacts

Name Title Type
SXPYYHRHMCJ3 Norma Lopez Auditee
7878921000 CPA Marco Rivera Auditor
No contacts on file

Notes to SEFA

Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures 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 arelimited 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 passthrough awards, should be treated by the Local Area as though they were received directly from the federal government. The Uniform Guidance requires theschedule to include the name of the passthrough 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 notavailable. 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: U.S Department of Labor Pass Through Agency: Puerto Rico Department of Commerce and Economic Development Federal Program Title: WIOA Youth Activities Assistance Listing Number: 17.259 Compliance Requirement: Matching, Level of Effort, Earmarking Type of Finding: Noncompliance and Significant Deficiency Responsible Official: Vanessa Ramos, Executive Director Prior Year Finding: 2021-001 Condition During our audits test of the earmarking compliance requirements for the Youth Program funds of the program 2020-2021, we noted that the Local Area only expended 45% of the funds allocated to provided services to out-of-school youth. Criteria A minimum of 75 percent of the Youth Activities funds allocated to State and local area, except for the area expenditure for administration, must be used to provide services to out-of-school youth (Section129(a)(4)(A), WIOA, 128 Stat.1506). Cause The Local Area failed to timely identify the lack of compliance with the earmarking requirements for the Youth Program and planned activities to out -of-school youth to comply with the requirements established. Effect The Local Area is not in compliance with the requirements of the Youth Activities. Recommendation We recommend the Local Area the monitoring of the earmarking for the Youth Program in a quarterly basis to ensure that at the end of the to two years meet the requirement establish. Questioned Costs None
Finding 2022-001
Finding: 2022-001 Federal Agency: U.S Department of Labor Pass Through Agency: Puerto Rico Department of Commerce and Economic Development Federal Program Title: WIOA Youth Activities Assistance Listing Number: 17.259 Compliance Requirement: Matching, Level of Effort, Earmarking Type of Finding: Noncompliance and Significant Deficiency Responsible Official: Vanessa Ramos, Executive Director Prior Year Finding: 2021-001 Condition During our audits test of the earmarking compliance requirements for the Youth Program funds of the program 2020-2021, we noted that the Local Area only expended 45% of the funds allocated to provided services to out-of-school youth. Criteria A minimum of 75 percent of the Youth Activities funds allocated to State and local area, except for the area expenditure for administration, must be used to provide services to out-of-school youth (Section129(a)(4)(A), WIOA, 128 Stat.1506). Cause The Local Area failed to timely identify the lack of compliance with the earmarking requirements for the Youth Program and planned activities to out -of-school youth to comply with the requirements established. Effect The Local Area is not in compliance with the requirements of the Youth Activities. Recommendation We recommend the Local Area the monitoring of the earmarking for the Youth Program in a quarterly basis to ensure that at the end of the to two years meet the requirement establish. Questioned Costs None