Finding Text
Finding 2022-002 ? Noncompliance/Material Weakness ? Earmarking A local area may expend no more than 10 percent of the Adult, Dislocated Worker, and Youth Activities funds allocated to the local area under Sections 128(b) (WIOA, 128 Stat. 1502) and 133(b) (WIOA, 128 Stat. 1516) for within State allocations. The funds provided for administrative costs by one of the three fund sources (Adult, Dislocated Worker, Youth Activities) can be used for administrative costs of the other two sources. A minimum of 75 percent of the Youth Activities 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 (Section 129(a)(4)(A), WIOA, 128 Stat. 1506). Per section 129(c)(4) of the WIOA, not less than 20 percent of the youth program funds shall be used to provide youth participants with paid and unpaid work experiences. The Board did not have procedures in place to monitor and ensure that federal earmarking requirements were being met for any of the programs within the WIOA Cluster. Furthermore, we noted that less than 20 percent of the youth program funds were used to provide youth participants with paid and unpaid work experiences. The Board should have policies and procedures in place, including monitoring, to ensure that earmarking requirements are being met.