Finding 12533 (2022-001)

Significant Deficiency Repeat Finding
Requirement
G
Questioned Costs
-
Year
2022
Accepted
2022-12-20

AI Summary

  • Core Issue: The Local Area spent only 7.50% of Youth Activities funds on paid and unpaid work experiences, falling short of the required 20% threshold.
  • Impacted Requirements: This finding indicates a significant deficiency in internal controls over compliance with WIOA earmarking requirements.
  • Recommended Follow-Up: The Local Area should review its expenditures and implement measures to ensure compliance with earmarking requirements for future grants.

Finding Text

Finding: 2022-001 Federal Agency: United States Department of Labor Pass-through Agency: Puerto Rico Department of Economic Development Federal Program Title: WIOA Youth Activities Assistance Listing Number: 17.259 Compliance Requirement: Matching, Level of Effort, Earmarking Type of Finding: Significant Deficiency in Internal Control Over Compliance (SD) Responsible Official: Samaris A. Tejada Cruz ? Executive Director Prior Year Finding: 2021-001 Condition Per audit procedures performed over the WIOA Youth Activities, it was noted of the total program expenses spent on the Youth Activities, 7.50% was spent on paid and unpaid work experiences. Criteria Per Section 129(c)(4), WIOA, 128 Stat, 1510, not less than 20 percent of Youth Activities funds allocated to the local area, except for the local area expenditures for administration, must be used to provide paid and unpaid work experiences. Cause Cause is due to the lack of total expenditures on Youth Activities for paid and unpaid work experiences not meeting the required 20 percent threshold. Effect The Local Area is out of compliance with the earmarking requirement of the WIOA in that 20 percent of Youth Activity Funds allocated were not expended on paid and unpaid work experiences. Recommendation We recommend the Local Area review the expenditures and perform measures to ensure that earmarking expenditure requirements being met throughout the year for each grant. Questioned Costs None

Corrective Action Plan

December 9, 2022 Cognizant or Oversight Agency for Audit: Local Area Workforce Development North Central respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Ortiz, Rivera, Rivera & Co., Suite 152, PO Box 70250, San Juan, Puerto Rico 00936-7250. Audit period: Fiscal year ended June 30, 2022. The finding from the June 30, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT ? Reportable Condition: See condition 2022-001 Recommendation The Local Area must review the expenditures and perform measures to ensure that earmarking expenditure requirements being met throughout the year of each grant. Action Taken The North Central Workforce Development Area is working on public policies to make the Work Experience and Internship activities for the youth program more attractive, during the COVID 19 pandemic may young people did not want to participate in our programs for fear of exposure and getting infected. We are monitoring and identifying strategies to identify participants who need work experience in order to meet the twenty percent mark. Several of the strategies we are using are the following: ? Visiting Schools ? Direct communication with the Educational Region ? Active Participation in the communities With these strategies we are hopeful that we will reach the twenty percent mark. If the Cognizant or Oversight Agency for Audit has questions regarding this plan, please call Gisela E. Ferrer Ruiz, Title I-B Director, at (787) 879-4439. Cordially, Samaris Tejada Cruz Executive Director

Categories

Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 588975 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
17.278 Wia Dislocated Worker Formula Grants $3.72M
17.258 Wia Adult Program $2.64M
17.259 Wia Youth Activities $1.64M