Finding 576603 (2022-101)

Material Weakness
Requirement
G
Questioned Costs
$1
Year
2022
Accepted
2023-10-06
Audit: 240
Organization: Santa Cruz County (AZ)

AI Summary

  • Core Issue: The County's Workforce Development Department did not meet the federal requirement to spend 75% of WIOA Youth Activities funds on out-of-school youth, only spending 45% instead.
  • Impacted Requirements: Federal regulations mandate earmarking 75% of funds for out-of-school youth services and require effective monitoring and reporting of expenditures.
  • Recommended Follow-Up: The Department should ensure compliance by developing written policies for spending, monitoring, and recruiting out-of-school youth, and adjusting funds as necessary.

Finding Text

Condition—Contrary to federal regulation, the County’s Workforce Development Department (Department) failed to ensure that it spent the required 75 percent, or $289,562, of WIOA Youth Activities monies earmarked to provide services to out-of-school youth from April 2020 through June 2022. Instead, the Department spent only 45 percent, or $175,338, of the required 75 percent and spent the remaining 30 percent, or $114,224, to provide services to in-school youth, which was an allowable activity for the program but did not meet the earmarking requirements. Criteria—Federal regulation requires the Department to earmark and spend no less than 75 percent of its WIOA Youth Activities monies on out-of-school youth services. Additionally, federal regulation also requires the Department to monitor such expenditures and report them to the pass-through grantor monthly throughout the award period to ensure it is spending the monies in a timely manner to meet the earmarking requirement (20 CFR §681.410). Also, federal regulation requires establishing and maintaining effective internal control over federal awards that provides reasonable assurance that federal programs are being managed in compliance with all applicable laws, regulations, and award terms (2 CFR §200.303). Cause—The Department used a tracking mechanism to report its in-school youth and out-of-school youth spending throughout the fiscal year but did not have written policies and procedures requiring it to properly monitor and adjust its spending to provide in-school and out-of-school youth services to ensure earmarking requirements are met during the fiscal year and throughout the award period. Also, the Department reported that, due to the demographic constraints within the County, it did not have an effective strategy to recruit and retain qualified out-of-school youth who would benefit from the federal program services. Effect—County out-of-school youth did not receive the $114,224 in services that the federal program intended. Recommendations—The Department should: 1. Spend no less than the required 75 percent of its WIOA Youth Activities monies to provide out-of-school youth services. 2. Develop written policies and procedures for its WIOA Youth Activities program to: a. Work with the pass-through grantor or federal agency to develop an effective strategy to recruit and retain qualified out-of-school youth who will benefit from program services. b. Monitor its out-of-school services spending throughout the fiscal year and award period. c. Adjust spending to meet the earmarking requirement if out-of-school youth participation is lower than expected. The County’s corrective action plan at the end of this report includes the views and planned corrective action of its responsible officials. We are not required to audit and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy.

Categories

Questioned Costs Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 161 2022-101
    Material Weakness
  • 162 2022-101
    Material Weakness
  • 163 2022-101
    Material Weakness
  • 164 2022-102
    Material Weakness
  • 576604 2022-101
    Material Weakness
  • 576605 2022-101
    Material Weakness
  • 576606 2022-102
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $788,255
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $696,749
97.067 Homeland Security Grant Program $641,751
14.228 Covid-19 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $459,197
95.001 High Intensity Drug Trafficking Areas Program $450,347
17.259 Wia Youth Activities $440,088
93.268 Immunization Cooperative Agreements $351,029
21.027 Coronavirus State and Local Fiscal Recovery Funds $304,565
10.665 Schools and Roads - Grants to States $287,841
17.258 Wia Adult Program $258,351
93.069 Public Health Emergency Preparedness $246,952
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $225,673
17.278 Wia Dislocated Worker Formula Grants $225,269
16.839 Stop School Violence $189,178
84.002 Adult Education - Basic Grants to States $148,899
97.042 Emergency Management Performance Grants $101,607
93.563 Child Support Enforcement $98,979
16.606 State Criminal Alien Assistance Program $93,351
16.585 Drug Court Discretionary Grant Program $60,618
10.351 Rural Business Development Grant $41,750
93.103 Food and Drug Administration_research $41,665
20.703 Interagency Hazardous Materials Public Sector Training and Planning Grants $40,871
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $38,367
17.268 H-1b Job Training Grants $33,706
20.600 State and Community Highway Safety $30,739
84.425 Education Stabilization Fund $23,740
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $8,060
93.667 Social Services Block Grant $7,956
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $7,450
84.027 Special Education_grants to States $1,014
90.404 2018 Hava Election Security Grants $329
84.027 Covid-19 Special Education_grants to States $33