Audit 351865

FY End
2024-06-30
Total Expended
$4.48M
Findings
6
Programs
3
Year: 2024 Accepted: 2025-03-31

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
547925 2024-002 Material Weakness Yes L
547926 2024-002 Material Weakness Yes L
547927 2024-002 Material Weakness Yes L
1124367 2024-002 Material Weakness Yes L
1124368 2024-002 Material Weakness Yes L
1124369 2024-002 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
17.278 Wioa Dislocated Worker Formula Grants $2.09M Yes 1
17.259 Wioa Youth Activities $1.24M Yes 1
17.258 Wioa Adult Program $1.15M Yes 1

Contacts

Name Title Type
FPHPKL4DSMC3 Rosa J. La Torre Santiago Auditee
7874717369 Angel Alfredo Lopez Vega Auditor
No contacts on file

Notes to SEFA

Title: GENERAL 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. a. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. b. Pass-through entity identifying numbers are presented where available. c. The Local Area elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. d. Major programs are identified in the Summary of Auditors’ Results Section of the Schedule of Findings and Questioned Costs. e. During fiscal year 2023-2024, there were no awards passed through to sub-recipients. De Minimis Rate Used: N Rate Explanation: The Local Area elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Local Workforce Development Area – South Central, (Local Area) under programs of the federal government for the fiscal year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, (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, changes in net position, or cash flows of the Local Area.
Title: SUMMARIES 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. a. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. b. Pass-through entity identifying numbers are presented where available. c. The Local Area elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. d. Major programs are identified in the Summary of Auditors’ Results Section of the Schedule of Findings and Questioned Costs. e. During fiscal year 2023-2024, there were no awards passed through to sub-recipients. De Minimis Rate Used: N Rate Explanation: The Local Area elected not to use the 10 percent de minimis 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. a. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. b. Pass-through entity identifying numbers are presented where available. c. The Local Area elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. d. Major programs are identified in the Summary of Auditors’ Results Section of the Schedule of Findings and Questioned Costs. e. During fiscal year 2023-2024, there were no awards passed through to sub-recipients.
Title: ASSISTANCE LISTING NUMBER 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. a. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. b. Pass-through entity identifying numbers are presented where available. c. The Local Area elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. d. Major programs are identified in the Summary of Auditors’ Results Section of the Schedule of Findings and Questioned Costs. e. During fiscal year 2023-2024, there were no awards passed through to sub-recipients. De Minimis Rate Used: N Rate Explanation: The Local Area elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Assistance Listing Number, formerly known as the Catalog of Federal Domestic Assistance (CFDA) Number, is a five-digit number assigned in the awarding document for all Federal assistance award mechanisms, including Federal grants and cooperative agreements. 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 Reference 2024-002 Federal Agency: U.S. Department of Labor Pass-through Agency: P.R. Department of Economic Development and Commerce (DDEC) Federal Program Title and Assistance Listing Number (ALN): WIOA Cluster: WIOA Adult Program (ALN 17.258) WIOA Youth Activities (ALN 17.259) WIOA Dislocated Worker Formula Grants (ALN 17.278) Compliance Requirement: Reporting (L) Type of finding: Material Weakness in Internal Control over Compliance (MW), Instance of Noncompliance (NC) This finding is similar to prior-year finding 2023-002. Statement of Condition The financial information related to the quarterly accumulated expense report corresponding to the quarter ended on June 30, 2024 was not submitted on or before July 15, 2024. The information was submitted on July 18, 2024. The bank reconciliation and cash journal report for June 30, 2024 were not submitted on or before the tenth (10) day of the following month. The information was submitted on July 11, 2024. Criteria The Local Workforce Development Areas must comply with the established dates by the DDEC for performed and submitted the required information. Cause of Condition The LWDA – South Central did not submit the quarterly accumulated expense report and the bank reconciliation and cash journal report to the quarter ended and for the month ended on June 30, 2024, to the DDEC during the required submission deadline dates. Effect of Condition The continued occurrence of this situation could result in possible significant limitations on available funds. Recommendation We recommend the LWDA – South Central implements internal control procedures in order to meet submission deadlines. Questioned Costs None Views of Responsible Officials and Planned Corrective Action We gave instructions to the Finance Department Director to strengthen internal procedures and controls to ensure accurate preparation and submission of financial reports within the required timeframe. Implementation Date: July 1, 2025. Responsible Person: Mrs. Rosa J. La Torre Santiago, Executive Director
Finding Reference 2024-002 Federal Agency: U.S. Department of Labor Pass-through Agency: P.R. Department of Economic Development and Commerce (DDEC) Federal Program Title and Assistance Listing Number (ALN): WIOA Cluster: WIOA Adult Program (ALN 17.258) WIOA Youth Activities (ALN 17.259) WIOA Dislocated Worker Formula Grants (ALN 17.278) Compliance Requirement: Reporting (L) Type of finding: Material Weakness in Internal Control over Compliance (MW), Instance of Noncompliance (NC) This finding is similar to prior-year finding 2023-002. Statement of Condition The financial information related to the quarterly accumulated expense report corresponding to the quarter ended on June 30, 2024 was not submitted on or before July 15, 2024. The information was submitted on July 18, 2024. The bank reconciliation and cash journal report for June 30, 2024 were not submitted on or before the tenth (10) day of the following month. The information was submitted on July 11, 2024. Criteria The Local Workforce Development Areas must comply with the established dates by the DDEC for performed and submitted the required information. Cause of Condition The LWDA – South Central did not submit the quarterly accumulated expense report and the bank reconciliation and cash journal report to the quarter ended and for the month ended on June 30, 2024, to the DDEC during the required submission deadline dates. Effect of Condition The continued occurrence of this situation could result in possible significant limitations on available funds. Recommendation We recommend the LWDA – South Central implements internal control procedures in order to meet submission deadlines. Questioned Costs None Views of Responsible Officials and Planned Corrective Action We gave instructions to the Finance Department Director to strengthen internal procedures and controls to ensure accurate preparation and submission of financial reports within the required timeframe. Implementation Date: July 1, 2025. Responsible Person: Mrs. Rosa J. La Torre Santiago, Executive Director
Finding Reference 2024-002 Federal Agency: U.S. Department of Labor Pass-through Agency: P.R. Department of Economic Development and Commerce (DDEC) Federal Program Title and Assistance Listing Number (ALN): WIOA Cluster: WIOA Adult Program (ALN 17.258) WIOA Youth Activities (ALN 17.259) WIOA Dislocated Worker Formula Grants (ALN 17.278) Compliance Requirement: Reporting (L) Type of finding: Material Weakness in Internal Control over Compliance (MW), Instance of Noncompliance (NC) This finding is similar to prior-year finding 2023-002. Statement of Condition The financial information related to the quarterly accumulated expense report corresponding to the quarter ended on June 30, 2024 was not submitted on or before July 15, 2024. The information was submitted on July 18, 2024. The bank reconciliation and cash journal report for June 30, 2024 were not submitted on or before the tenth (10) day of the following month. The information was submitted on July 11, 2024. Criteria The Local Workforce Development Areas must comply with the established dates by the DDEC for performed and submitted the required information. Cause of Condition The LWDA – South Central did not submit the quarterly accumulated expense report and the bank reconciliation and cash journal report to the quarter ended and for the month ended on June 30, 2024, to the DDEC during the required submission deadline dates. Effect of Condition The continued occurrence of this situation could result in possible significant limitations on available funds. Recommendation We recommend the LWDA – South Central implements internal control procedures in order to meet submission deadlines. Questioned Costs None Views of Responsible Officials and Planned Corrective Action We gave instructions to the Finance Department Director to strengthen internal procedures and controls to ensure accurate preparation and submission of financial reports within the required timeframe. Implementation Date: July 1, 2025. Responsible Person: Mrs. Rosa J. La Torre Santiago, Executive Director
Finding Reference 2024-002 Federal Agency: U.S. Department of Labor Pass-through Agency: P.R. Department of Economic Development and Commerce (DDEC) Federal Program Title and Assistance Listing Number (ALN): WIOA Cluster: WIOA Adult Program (ALN 17.258) WIOA Youth Activities (ALN 17.259) WIOA Dislocated Worker Formula Grants (ALN 17.278) Compliance Requirement: Reporting (L) Type of finding: Material Weakness in Internal Control over Compliance (MW), Instance of Noncompliance (NC) This finding is similar to prior-year finding 2023-002. Statement of Condition The financial information related to the quarterly accumulated expense report corresponding to the quarter ended on June 30, 2024 was not submitted on or before July 15, 2024. The information was submitted on July 18, 2024. The bank reconciliation and cash journal report for June 30, 2024 were not submitted on or before the tenth (10) day of the following month. The information was submitted on July 11, 2024. Criteria The Local Workforce Development Areas must comply with the established dates by the DDEC for performed and submitted the required information. Cause of Condition The LWDA – South Central did not submit the quarterly accumulated expense report and the bank reconciliation and cash journal report to the quarter ended and for the month ended on June 30, 2024, to the DDEC during the required submission deadline dates. Effect of Condition The continued occurrence of this situation could result in possible significant limitations on available funds. Recommendation We recommend the LWDA – South Central implements internal control procedures in order to meet submission deadlines. Questioned Costs None Views of Responsible Officials and Planned Corrective Action We gave instructions to the Finance Department Director to strengthen internal procedures and controls to ensure accurate preparation and submission of financial reports within the required timeframe. Implementation Date: July 1, 2025. Responsible Person: Mrs. Rosa J. La Torre Santiago, Executive Director
Finding Reference 2024-002 Federal Agency: U.S. Department of Labor Pass-through Agency: P.R. Department of Economic Development and Commerce (DDEC) Federal Program Title and Assistance Listing Number (ALN): WIOA Cluster: WIOA Adult Program (ALN 17.258) WIOA Youth Activities (ALN 17.259) WIOA Dislocated Worker Formula Grants (ALN 17.278) Compliance Requirement: Reporting (L) Type of finding: Material Weakness in Internal Control over Compliance (MW), Instance of Noncompliance (NC) This finding is similar to prior-year finding 2023-002. Statement of Condition The financial information related to the quarterly accumulated expense report corresponding to the quarter ended on June 30, 2024 was not submitted on or before July 15, 2024. The information was submitted on July 18, 2024. The bank reconciliation and cash journal report for June 30, 2024 were not submitted on or before the tenth (10) day of the following month. The information was submitted on July 11, 2024. Criteria The Local Workforce Development Areas must comply with the established dates by the DDEC for performed and submitted the required information. Cause of Condition The LWDA – South Central did not submit the quarterly accumulated expense report and the bank reconciliation and cash journal report to the quarter ended and for the month ended on June 30, 2024, to the DDEC during the required submission deadline dates. Effect of Condition The continued occurrence of this situation could result in possible significant limitations on available funds. Recommendation We recommend the LWDA – South Central implements internal control procedures in order to meet submission deadlines. Questioned Costs None Views of Responsible Officials and Planned Corrective Action We gave instructions to the Finance Department Director to strengthen internal procedures and controls to ensure accurate preparation and submission of financial reports within the required timeframe. Implementation Date: July 1, 2025. Responsible Person: Mrs. Rosa J. La Torre Santiago, Executive Director
Finding Reference 2024-002 Federal Agency: U.S. Department of Labor Pass-through Agency: P.R. Department of Economic Development and Commerce (DDEC) Federal Program Title and Assistance Listing Number (ALN): WIOA Cluster: WIOA Adult Program (ALN 17.258) WIOA Youth Activities (ALN 17.259) WIOA Dislocated Worker Formula Grants (ALN 17.278) Compliance Requirement: Reporting (L) Type of finding: Material Weakness in Internal Control over Compliance (MW), Instance of Noncompliance (NC) This finding is similar to prior-year finding 2023-002. Statement of Condition The financial information related to the quarterly accumulated expense report corresponding to the quarter ended on June 30, 2024 was not submitted on or before July 15, 2024. The information was submitted on July 18, 2024. The bank reconciliation and cash journal report for June 30, 2024 were not submitted on or before the tenth (10) day of the following month. The information was submitted on July 11, 2024. Criteria The Local Workforce Development Areas must comply with the established dates by the DDEC for performed and submitted the required information. Cause of Condition The LWDA – South Central did not submit the quarterly accumulated expense report and the bank reconciliation and cash journal report to the quarter ended and for the month ended on June 30, 2024, to the DDEC during the required submission deadline dates. Effect of Condition The continued occurrence of this situation could result in possible significant limitations on available funds. Recommendation We recommend the LWDA – South Central implements internal control procedures in order to meet submission deadlines. Questioned Costs None Views of Responsible Officials and Planned Corrective Action We gave instructions to the Finance Department Director to strengthen internal procedures and controls to ensure accurate preparation and submission of financial reports within the required timeframe. Implementation Date: July 1, 2025. Responsible Person: Mrs. Rosa J. La Torre Santiago, Executive Director