Finding 399067 (2023-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-05-30

AI Summary

  • Core Issue: The quarterly expense report for April, May, and June 2023 was submitted late, on August 2, 2023, instead of by the July 20 deadline.
  • Impacted Requirements: This violates WIOA funding criteria requiring timely submission of financial reports to ensure proper oversight of expenses.
  • Recommended Follow-Up: Implement internal controls to ensure future reports are submitted on time, as agreed upon by the ALDL's finance and executive leadership.

Finding Text

Section III. Federal Awards Findings Questioned Costs Finding 2023-002: Late submission of the quarterly expense report corresponding to April, May and June 2023. Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC) Assistance Listing No.: 17.258, 17.259, 17.278, 17.277 Program title: Adult Program, Youth Activities, Dislocated Worker Formula Grant, and National Dislocated Worker Formula Grant Federal Award Year: 7/1/2022 - 6/30/2023 Federal Award No.: 2023-000138, 2023-000082, 2023-001991, 2023-001927 Name of federal agency: Workforce Innovation and Opportunity Act Name of pass-through entity: PR Department of Economic Development and Commerce COVID-19 program?  Yes  No Criteria: WIOA Funding Delegation Contracts in part B "Fiscal reports that must be submitted to the Department of Economic Development and Commerce (DEDC)", specifies that the ALDL must report to DEDC finance office the total expenses incurred, accruals, obligations and available balances of the approved funds on or before the (20th) day of the following month. They must be submitted in Excel and PDF formats. Reports submitted in PDF format must be certified and signed by the Director of Finance and the Executive Director and/or those authorized persons. Statement of Condition: The financial information related to the accumulated expenses corresponding to the months of April, May and June 2023 were not submitted before July 20, 2023. The information was submitted on August 2, 2023 resulting as a systemic problem. Cause of Condition: The ALDL did not submit the quarterly expense report for the quarter ended June 30, 2023, to DEDC during the required submission deadline period. Effect of Condition: The continued occurrence of this situation could result in possible significant limitations on available funds because without the quarterly expenses the DEDC cannot ensure that the expenses incurred are necessary and essential to carry out the permitted activities. Questioned Cost: None Prior year finding: N/A Recommendation: We recommend the ALDL implements internal control procedures in order to meet the submission deadlines. Views of responsible officials and planned corrective actions: The ALDL agrees with this finding and will adhere to the corrective action plan on page 55 in this audit report. Responsible Person: Alba R. López González – Finance Director, Rosa Jazmín La Torre – Executive Director

Categories

Subrecipient Monitoring Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 399065 2023-002
    Material Weakness
  • 399066 2023-003
    Material Weakness
  • 399068 2023-003
    Material Weakness
  • 399069 2023-002
    Material Weakness
  • 399070 2023-003
    Material Weakness
  • 399071 2023-002
    Material Weakness
  • 399072 2023-003
    Material Weakness
  • 975507 2023-002
    Material Weakness
  • 975508 2023-003
    Material Weakness
  • 975509 2023-002
    Material Weakness
  • 975510 2023-003
    Material Weakness
  • 975511 2023-002
    Material Weakness
  • 975512 2023-003
    Material Weakness
  • 975513 2023-002
    Material Weakness
  • 975514 2023-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
17.258 Wia Adult Program $1.24M
17.259 Wia Youth Activities $1.19M
17.278 Wia Dislocated Worker Formula Grants $860,916
17.277 Workforce Investment Act (wia) National Emergency Grants $183,218