Finding 38398 (2022-001)

Finding: 2022-001 Federal Agency: U.S Department of Labor Pass Through Agency: Puerto Rico Department of Commerce and Economic Development Federal Program Title: WIOA Youth Activities Assistance Listing Number: 17.259 Compliance Requirement: Matching, Level of Effort, Earmarking Type of Finding: Noncompliance and Significant Deficiency Responsible Official: Vanessa Ramos, Executive Director Prior Year Finding: 2021-001 Condition During our audits test of the earmarking compliance requirements for the Youth Program funds of the program 2020-2021, we noted that the Local Area only expended 45% of the funds allocated to provided services to out-of-school youth. Criteria A minimum of 75 percent of the Youth Activities funds allocated to State and local area, except for the area expenditure for administration, must be used to provide services to out-of-school youth (Section129(a)(4)(A), WIOA, 128 Stat.1506). Cause The Local Area failed to timely identify the lack of compliance with the earmarking requirements for the Youth Program and planned activities to out -of-school youth to comply with the requirements established. Effect The Local Area is not in compliance with the requirements of the Youth Activities. Recommendation We recommend the Local Area the monitoring of the earmarking for the Youth Program in a quarterly basis to ensure that at the end of the to two years meet the requirement establish. Questioned Costs None