Finding Text
Finding Reference 2024-002
Federal Agency: U.S. Department of Labor
Pass-through Agency: P.R. Department of Economic Development and Commerce (DDEC)
Federal Program Title and Assistance Listing Number (ALN):
WIOA Cluster: WIOA Adult Program (ALN 17.258)
WIOA Youth Activities (ALN 17.259)
WIOA Dislocated Worker Formula Grants (ALN 17.278)
Compliance Requirement:
Reporting (L)
Type of finding: Material Weakness in Internal Control over Compliance (MW), Instance of Noncompliance (NC)
This finding is similar to prior-year finding 2023-002.
Statement of Condition The financial information related to the quarterly accumulated expense report corresponding to the quarter ended on June 30, 2024 was not submitted on or before July 15, 2024. The information was submitted on July 18, 2024. The bank reconciliation and cash journal report for June 30, 2024 were not submitted on or before the tenth (10) day of the following month. The information was submitted on July 11, 2024.
Criteria The Local Workforce Development Areas must comply with the established dates by the DDEC for performed and submitted the required information.
Cause of Condition The LWDA – South Central did not submit the quarterly accumulated expense report and the bank reconciliation and cash journal report to the quarter ended and for the month ended on June 30, 2024, to the DDEC during the required submission deadline dates.
Effect of Condition The continued occurrence of this situation could result in possible significant limitations on available funds.
Recommendation We recommend the LWDA – South Central implements internal control procedures in order to meet submission deadlines.
Questioned Costs None
Views of Responsible Officials and Planned Corrective Action
We gave instructions to the Finance Department Director to strengthen internal procedures and controls to ensure accurate preparation and submission of financial reports within the required timeframe.
Implementation Date: July 1, 2025.
Responsible Person: Mrs. Rosa J. La Torre Santiago, Executive Director