FAC Explorer

Finding 45709 (2022-001)

Significant Deficiency
Requirement
G
Questioned Costs
-
Year
2022
Accepted
2023-01-16
Audit: 40206
Organization: Alliance for Business and Training, Inc. (TN)
Auditor: Blackburn Childers and Steagall Plc

AI Summary

  • Core Issue: The LWNEP211YOUTH22 contract used only 53% of funds for out-of-school youth, falling short of the required 75% under WIOA guidelines.
  • Impacted Requirements: The lack of compliance with earmarking requirements for Youth Activity funds, particularly for fiscal year 2022, which did not have a waiver.
  • Recommended Follow-Up: AB&T should closely monitor future expenditures to ensure compliance with funding requirements as outlined in grant contracts.

Finding Text

In accordance with the WIOA Compliance Supplement Earmarking requirements, "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." During the audit, it was noted that the percentage used on out-of-school youth for the LWNEP211YOUTH22 contract was below the minimum 75% as the calculated amount was 53%. A waiver was obtained by the state in fiscal year 2021, but was not obtained for fiscal year 2022. We recommend AB&T continue to monitor expenditures by required category as specified in the grant contracts and agreements.

Corrective Action Plan

A statewide waiver for the required percentage had been requested and approved by the federal government by the State of Tennessee in years past. During the year in question, the waiver had expired, and a new waiver was not requested by the State of Tennessee in time to cover the period in question. At the point AB&T became aware that the waiver had not been requested, it was too late to overcome the deficit. In the future, the FTDD, the current fiscal agent for the WIOA program in Northeast Tennessee will monitor expenditures by required categories as specified in grant contracts and agreements and ask that the State request any necessary waivers.

Categories

Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 45710 2022-001
    Significant Deficiency
  • 45711 2022-001
    Significant Deficiency
  • 45712 2022-001
    Significant Deficiency
  • 45713 2022-001
    Significant Deficiency
  • 45714 2022-001
    Significant Deficiency
  • 45715 2022-001
    Significant Deficiency
  • 45716 2022-001
    Significant Deficiency
  • 622151 2022-001
    Significant Deficiency
  • 622152 2022-001
    Significant Deficiency
  • 622153 2022-001
    Significant Deficiency
  • 622154 2022-001
    Significant Deficiency
  • 622155 2022-001
    Significant Deficiency
  • 622156 2022-001
    Significant Deficiency
  • 622157 2022-001
    Significant Deficiency
  • 622158 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
17.278 Wia Dislocated Worker Formula Grants $467,006
17.207 Employment Service/wagner-Peyser Funded Activities $236,451
17.258 Wia Adult Program $215,728
17.235 Senior Community Service Employment Program $143,224
17.285 Apprenticeship USA Grants $117,214
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $27,580
17.287 Job Corps Experimental Projects and Technical Assistance (b) $19,830
17.225 Unemployment Insurance $13,027
17.259 Wia Youth Activities $11,385