Finding 1118427 (2024-001)

Significant Deficiency
Requirement
G
Questioned Costs
-
Year
2024
Accepted
2025-03-31

AI Summary

  • Core Issue: The Southwestern Area Workforce Development Board allocated only 74.24% of Youth Activities funds to out-of-school youth, falling short of the required 75% under WIOA.
  • Impacted Requirements: Section 129(a)(4)(A) of WIOA mandates that at least 75% of funds must be directed to out-of-school youth services.
  • Recommended Follow-Up: Management should implement stronger monitoring controls to ensure compliance with funding allocation requirements and conduct quarterly reviews to track progress.

Finding Text

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

Categories

Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 541985 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
17.278 Wioa Dislocated Worker Formula Grants $1.67M
17.259 Wioa Youth Activities $1.56M
17.258 Wioa Adult Program $1.55M