Finding Text
Earmarking Criteria – WIOA Section 129(a)(4)(a) states that a minimum of 75 percent of the Youth Activity funds allocated to states and local areas, except for the local area expenditures for administration, must be used to provide services to out-of-school youth. Condition – For program year 2020 grant year, the WIOA youth activity funds spent on out-of-school youth were less than the 75 percent required. Cause – The Local Workforce Development Area policies do not require and procedures have not been established to require monitoring of earmarking requirements. Effect – Earmarking requirements were not met due to a lack of procedures related to monitoring of earmarking requirements. Recommendation – The Local Workforce Development Area should establish policies and procedures to ensure earmarking requirements of WIOA are met. Response and Corrective Action Planned – The Northeast Iowa Workforce Development Area acknowledges the finding. Since the program year was reviewed, the State of Iowa has received a waiver allowing a 50% Out-of-School Youth and 50% In-School Youth expenditure split, which the Northeast Iowa LWDA has adopted. In addition, a new Title I service provider is in place, and procedures are being implemented to ensure compliance with the current expenditure requirements. LWDA staff will conduct quarterly reviews of youth expenditures and require regular reporting from the service provider to verify adherence. Conclusion – Response accepted.