Finding Text
2022-001 20% Program Expenditures for Youth Work Experience Federal Agency: Department of Labor Federal Programs: 17.259 Workforce Innovation Opportunity Act (WIOA) ? Youth Activities (Passed through MassHire Department of Career Services (MDCS)) Condition: The Federal earmarking requirement related to youth work experience program expenditures was not met. Criteria: Not less than 20 percent of Youth Activity funds allocated to the local area, except for the local area expenditures for administration, must be used to provide paid and unpaid work experiences (Section 129(c)(4)), WIOA, 128 Stat. 1510). Cause: Youth enrollment and participation in the program was low due to the current economic conditions. Effect: The 20% minimum of WIOA youth funds were not expended. Context: The WIOA youth activities youth work experience expenditures were 15% of the allocated funds to the Organization at June 30, 2022. Questioned Costs: None Recommendation: We recommend that management develop a plan to entice the youth workers to join the program so that they can meet the program compliance requirement. Management Response: Management agrees with the finding. It is the firm belief by MNCWB that the identified finding is a direct result of the impact to service delivery and fund expenditure caused by the COVID-19 pandemic. The COVID-19 pandemic has created significant challenges for the entire workforce development system and therefore fund utilization during the FY22 review period was significantly impacted. See management?s attached corrective action plan.