The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grants activities of the Department and is presented on the modified accrual basis of accounting. Therefore, some amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the basic financial statements. The Schedule excludes the other agency, which is an organizational component of the Department, known as the Vocational Rehabilitation Administration, presented as governmental funds of the Department. The information in the Schedule is presented in accordance with the requirements of Uniform Guidance 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). State or local governments redistributions of federal awards to the Department known as "pass through awards", should be treated by the Department as though they were received directly from the federal government. The Uniform Guidance 2 CFR Part 200 requires the Schedule to include the name of the pass through entity, and the identifying number assigned to the pass through entity for the federal awards received. The Department did not pass through to sub-recipients any portion of its awards.
The Assistance Listing Number (ALN), 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. Assistance listings are detailed public descriptions of federal programs that provide grants, loans, scholarships, insurance, and other types of assistance awards. The Sam.gov assistance listing is the publicly available online database showing all available Federally funded programs. A cluster of programs means federal programs with different ALN numbers that are defined as a cluster of programs, because they are closely related programs that share common requirements. Numbers identified as N/A are not applicable and numbers identified as N/AV are not available. The Schedule of Expenditures of Federal Awards includes the following clusters: Cluster Federal Program Federal ALN Number Employment Service Employment Service/Wagner Peyser Funded Activities 17.207 Disable Veterans' Outreach program (DVOP) 17.801
Major programs are identified in the Summary of Auditors' Results Section of the Schedule of Findings and Questioned Costs.
In accordance with the Department of Labor, Office of Inspector General instructions, the Department recorded State Regular Unemployment Compensation (UC) benefits under ALN No. 17.225, on the accompanying Schedule of Expenditures of Federal Awards. The individual State and Federal portions are as follows: State Regular UC benefits $171,134,416 Federal UC benefits 2,044,623 Federal UC administrative costs 18,054,813 Total Benefits $191,233,852
Expenditures of federal awards are reported in the Department's Statement of Revenues, Expenditures and Changes in Fund Balances (Deficit) Governmental Funds and the Statement of Revenues, Expenses and Changes in Net Position Enterprise Funds. A reconciliation of the total expenditures from the accompanying Schedule to the Fund Financial Statements is as follows: Expenditures reported in the Statement of Revenues, Expenditures and Changes in Fund Balances (Deficit) - Governmental Funds $ 204,877,936 Expenses reported in the Statement of Revenues, Expenses and Changes in Net Position - Enterprise Funds 182,326,744 Total 387,204,680 Less Expenses reported in: General Fund (10,549,134) Work Opportunity Incentive Fund (50,685,560) Vocational Rehabilitation Administration (96,774,641) Other Funds (17,266,195) Disability Insurance (7,029,508) Drivers Insurance (2,945,162) Amount reported in the Schedule of Expenditures of Federal Awards $ 201,954,480
As described in finding 2025-010 in Section III of the Schedule of Findings and Questioned Costs, the Department was unable submit the Data Collection Form and Reporting Package to the Federal Audit Clearinghouse of fiscal year ending June 30, 2025, during the required period. The main reason for the noncompliance with required date (March 31, 2026) was the delay in accountability of transactions and reconciliation of certain cash accounts managed and controlled by the Puerto Rico Treasury Department. The Department developed a plan to continue providing its services to the community and comply with the federal grants’ requirements.