Audit 350791

Assistance Listing Number Name of Federal Program Award Number Award Year 17.258 / 17.259 / 17.278 WIOA Cluster 24-631-9001-00006 2023 Condition: A minimum of 75 percent of the Youth Activities funds allocated to state and local areas must be used to provide services to out-of-school youth. The Southwestern Area Workforce Development Board only allocated 74.24 percent to out-of-school youth. Criteria: Under the requirements of Section 129(a)(4)(A), WIOA, 128 Stat. 1506, the Southwestern Area Workforce Development Board is required to allocate a minimum of 75 percent of funds to out-of-school youth. Context: Management does not have adequate procedures in place to track compliance with the requirement to allocate a minimum of 75 percent to out-of-school youth. The finding relates to a lack of effective policies and procedures. Effect: Noncompliance with award requirements. Questioned Costs: None Cause: The Southwestern Area Workforce Development Board has not monitored the necessary controls to ensure the required amount was allocated to state and local areas to provide services to out-of-school youth. Repeat Finding: No Recommendation: We recommend management ensure that adequate controls are monitored to confirm that amounts allocated to services are consistent with grant requirements. Views of Responsible Officials: The Southwestern Area Workforce Development Board will strengthen the process in which it monitors compliance with the requirements of Section 129(a)(4)(A), WIOA, 128 Stat. 1506 and develop a strategy to exceed the minimum 75 percent of funds to out-of-school youth. Quarterly review and monitoring will take place during the Monitoring Committees meeting. The Fiscal Administrator will provide the report. A direct review of percentages of expenditures will be analyzed by Fiscal Administrator, Program Manager, Program Monitor, and WIOA Administrator prior to reporting to the monitoring committee. Person Responsible: Fiscal Administrator

Assistance Listing Number Name of Federal Program Award Number Award Year 17.258 / 17.259 / 17.278 WIOA Cluster 24-631-9001-00006 2023 Condition: A minimum of 75 percent of the Youth Activities funds allocated to state and local areas must be used to provide services to out-of-school youth. The Southwestern Area Workforce Development Board only allocated 74.24 percent to out-of-school youth. Criteria: Under the requirements of Section 129(a)(4)(A), WIOA, 128 Stat. 1506, the Southwestern Area Workforce Development Board is required to allocate a minimum of 75 percent of funds to out-of-school youth. Context: Management does not have adequate procedures in place to track compliance with the requirement to allocate a minimum of 75 percent to out-of-school youth. The finding relates to a lack of effective policies and procedures. Effect: Noncompliance with award requirements. Questioned Costs: None Cause: The Southwestern Area Workforce Development Board has not monitored the necessary controls to ensure the required amount was allocated to state and local areas to provide services to out-of-school youth. Repeat Finding: No Recommendation: We recommend management ensure that adequate controls are monitored to confirm that amounts allocated to services are consistent with grant requirements. Views of Responsible Officials: The Southwestern Area Workforce Development Board will strengthen the process in which it monitors compliance with the requirements of Section 129(a)(4)(A), WIOA, 128 Stat. 1506 and develop a strategy to exceed the minimum 75 percent of funds to out-of-school youth. Quarterly review and monitoring will take place during the Monitoring Committees meeting. The Fiscal Administrator will provide the report. A direct review of percentages of expenditures will be analyzed by Fiscal Administrator, Program Manager, Program Monitor, and WIOA Administrator prior to reporting to the monitoring committee. Person Responsible: Fiscal Administrator