Finding Text
Findings 2022-001: WIOA Youth Activities (CFDA # 17.259) Agency: Department of Labor Compliance: Earmarking Finding Type: Compliance Criteria: The Organization is required to comply with the WIOA Act section 129 (c)(4) when utilizing the Youth Activities program funds. Accordingly, not less than 20 percent of Youth Activities funds allocated to the local area, except for the local area expenditures for administration, must be used to provide paid and unpaid work experiences to in-school and out-of-school youth. Condition: The Organization has not fulfilled the earmarking percentage requirement for work experience for youth activities. Context: Out of the funds allocated for the WIOA Youth Activities, only 11.21% was used to provide in-school youth and out-of-school youth with paid and unpaid work experiences. Identification of Repeat Finding: Yes, see Finding 2020-001. Questioned Cost: None Cause: The continued impact by the worldwide COVID-19 pandemic health crisis has caused on-going and significant reduction in youth enrollments thus resulting in a significant reduction of the number of youth work experience opportunities. In addition, the impact of the pandemic created significant staff shortages and prolonged vacancies which resulted in the inability to recruit youth enrollments and identify work experience opportunities overall. Finally, the unsubsidized labor market has created extreme competition in the ability to entice youth involvement in the WIOA Youth work experience program. Effect: Fund allocated for paid and unpaid work experience for Youth Activities was not fully utilized. Recommendation: We recommend that the Organization comply with the requirements or seek a waiver from the federal funding agency. View of Responsible Official: Management agrees with the finding. See the management?s views and corrective action plan.