FAC Explorer

Finding 48423 (2022-001)

Significant Deficiency
Requirement
G
Questioned Costs
-
Year
2022
Accepted
2023-03-23
Audit: 46113
Organization: Local Area Workforce Development Mayaguez-Las Marias (PR)
Auditor: Ortiz Rivera Rivera & CO LLC

AI Summary

  • Core Issue: The Local Area spent only 74% of allocated funds for out-of-school youth services, falling short of the required 75%.
  • Impacted Requirements: Noncompliance with earmarking requirements under WIOA, specifically Section 129(a)(4)(A).
  • Recommended Follow-Up: Implement quarterly monitoring of earmarking for the Youth Program to ensure compliance within the two-year period.

Finding Text

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: Hilda Renovales, Executive Director Prior Year Finding: None 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 74% 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

Corrective Action Plan

March 16, 2023 Cognizant or Oversight Agency for Audit: Local Area of Workforce Development Mayaguez-Las Marias 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.LLC, Suite 152, PO Box 70250, San Juan, Puerto Rico 00936-7250. Audit period: Fiscal year ended June 30, 2022. The findings 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 - FEDERAL AWARD PROGRAM AUDITS, DEPARTMENT OF LABOR Finding 2021-001: WIOA Cluster-WIOA Adult Program-CFDA No 17.258, WIOA Youth Activities-CFDA 17.259, Dislocated Worker Formula Grant-CFDA 17.278 Reportable Condition: See Condition 2022-001 Recommendation Our Audit Firm recommended the Local Area the monitoring of the earmaking for Younth Program in a quaterly basis to ensure that at the end of the two years meet the requirements. Action Taken We acknwledge the recommendations of the Audit Firm, however, we wish to indicate that during the past year we have been taking preventive measures, such as holding periodic meetings between the concerned departments, n order to achive the goals in all programs, particulary the out-of-school youth program. Form now on we will be more rigoruos in these measures, in order to fully comply with this requirement. IF the Cognizant or Oversigth Agency for Auditt has questions regarding this pllan, please call at (787) 834-8010 ext 2403.

Categories

Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 624865 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
17.278 Wia Dislocated Worker Formula Grants $2.88M
17.258 Wia Adult Program $707,338
17.259 Wia Youth Activities $647,125