FAC Explorer

Finding 38830 (2022-001)

Significant Deficiency
Requirement
G
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 34731
Organization: City of La Habra (CA)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The City did not meet the 75% requirement for spending Youth Activity funds on out of school youth (OSY), spending only 70%.
  • Impacted Requirements: WIOA section 129(a)(4)(A) mandates that a minimum of 75% of allocated funds must be used for OSY services.
  • Recommended Follow-Up: The City should establish procedures to ensure that expenditures align with funding requirements throughout the year.

Finding Text

Criteria or Specific Requirement: WIOA section 129(a)(4)(A), 128 Stat. 1506, states that a minimum of 75% of Youth Activity funds allocated to the local areas must be used to provide services to out of school youth (OSY). Condition: The City spent 70% of total youth expenditures on OSY activity. Questioned Costs: None. Context: The City was awarded $2,180,915 of which $1,635,686 was budgeted to be spent on OSY activity to meet the 75% requirement. However, the City only spent $1,516,368 of the total award of which $1,062,480 was spent on OSY activity. Cause: In-school youth (ISY) is easier to place into work experience (WEX) than OSY. The City registered more ISY into WEX than OSY and exhausted ISY WEX funding before the end of the year. The City tried to mitigate the allocation issue by not offering additional ISY WEX services until more OSY was placed into WEX but was unable to enroll enough OSY to meet the 75% requirement. Effect: The City was not in compliance with the 75% minimum requirement on OSY activity. Recommendation: We recommend the City implement procedure to ensure actual program expenditures stay in line with the earmarking requirements throughout the year. View of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

U.S. Department of Labor 2022-001 Earmarking for WIOA The Workforce Innovation and Opportunity (WIOA) Cluster - Assistance Listing No. 17.259 Recommendation: The City should implement procedures to ensure actual program expenditures stay in line with the earmarking requirements throughout the year. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: To ensure that the WIOA program spends 75% of the allocated WIOA funds on Out-of-School participants, staff will implement the following procedures: ? Staff will monitor the expenditures after each month of billing to the grant and will make adjustments as needed on a regular basis; and ? Staff will limit enrollment of In-school youth, in order to keep the expenditures to this program at 25%; until out-of-school youth participants and spending can maintain the target of 75% of spending. Name(s) of the contact person(s) responsible for corrective action: Diane Gomez, Employment & Training Manager; Kimberly Albarian, Community Services Manager Planned completion date for corrective action plan: June 30, 2023

Categories

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles

Other Findings in this Audit

  • 38831 2022-002
    Significant Deficiency
  • 615272 2022-001
    Significant Deficiency
  • 615273 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
17.259 Wia Youth Activities $1.52M
10.558 Child and Adult Care Food Program $1.40M
15.507 Watersmart (sustaining and Manage America's Resources for Tomorrow) $500,000
93.600 Head Start $424,600
93.575 Child Care and Development Block Grant $382,814
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $353,188
21.016 Equitable Sharing $219,351
21.027 Coronavirus State and Local Fiscal Recovery Funds $169,054
14.218 Community Development Block Grants/entitlement Grants $89,565
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $62,518
45.301 Museums for America $57,638
20.600 State and Community Highway Safety $53,989
20.205 Highway Planning and Construction $10,723
97.042 Emergency Management Performance Grants $8,648
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $7,709
16.607 Bulletproof Vest Partnership Program $5,293