Finding Text
Section III. Federal Awards Findings Questioned Costs
Finding 2023-002: Late submission of the quarterly expense report corresponding to April, May and June 2023.
Type of Finding: Material Weakness (MW), Instance of Noncompliance (NC)
Assistance Listing No.: 17.258, 17.259, 17.278, 17.277
Program title: Adult Program, Youth Activities, Dislocated Worker Formula Grant, and National Dislocated Worker Formula Grant
Federal Award Year: 7/1/2022 - 6/30/2023
Federal Award No.: 2023-000138, 2023-000082, 2023-001991, 2023-001927
Name of federal agency: Workforce Innovation and Opportunity Act
Name of pass-through entity: PR Department of Economic Development and Commerce
COVID-19 program? Yes No
Criteria: WIOA Funding Delegation Contracts in part B "Fiscal reports that must be submitted to the Department of Economic Development and Commerce (DEDC)", specifies that the ALDL must report to DEDC finance office the total expenses incurred, accruals, obligations and available balances of the approved funds on or before the (20th) day of the following month. They must be submitted in Excel and PDF formats. Reports submitted in PDF format must be certified and signed by the Director of Finance and the Executive Director and/or those authorized persons.
Statement of Condition: The financial information related to the accumulated expenses corresponding to the months of April, May and June 2023 were not submitted before July 20, 2023. The information was submitted on August 2, 2023 resulting as a systemic problem.
Cause of Condition: The ALDL did not submit the quarterly expense report for the quarter ended June 30, 2023, to DEDC during the required submission deadline period.
Effect of Condition: The continued occurrence of this situation could result in possible significant limitations on available funds because without the quarterly expenses the DEDC cannot ensure that the expenses incurred are necessary and essential to carry out the permitted activities.
Questioned Cost: None
Prior year finding: N/A
Recommendation: We recommend the ALDL implements internal control procedures in order to meet the submission deadlines.
Views of responsible officials and planned corrective actions: The ALDL agrees with this finding and will adhere to the corrective action plan on page 55 in this audit report.
Responsible Person: Alba R. López González – Finance Director, Rosa Jazmín La Torre – Executive Director