Finding Text
Finding 2023-002 Earmarking percentage requirement not met for DOL Senior Community Service Employment program
Criteria: Per 2 CFR Part 200, Appendix XI, Compliance Supplement May 2023, DOL Senior Community Service Employment, 3. Earmarking:
The amount of federal funds expended for enrollee wages and fringe benefits shall be no less than 75 percent of the grant (20 CFR section 641.873) except in those instances in which a grantee has requested, and DOL has approved such request, to use no less than 65 percent of the grant funds to pay for participant wage and fringe benefits so as to use up to an additional 10 percent of grant funds for participant training and supportive services (42 USC 3056(c)(6)(C)(i)).
Condition: The amount of federal funds expended for enrollee wages and fringe benefits for the DOL Senior Community Service Employment program for fiscal year 2022-2023 was $7,011,612, or 74.8 percent of the grant expenditures of $9,378,107, which is $21,968 less than the required 75 percent. The Association has discussed the issue with DOL and is waiting to hear back from them.
Questioned Cost: $21,968.
Cause: The COVID-19 pandemic had a continuing impact on the senior community, and enrollees’ participation is less than anticipated due to continued concerns about the impact of COVID-19 on seniors. However, certain administrative and fixed costs could not be decreased at the same pace. As a result, the Association missed the required percentage slightly.
Effect: Not meeting the required percentage could lead to return of portion of the funds unless a waiver is obtained.
Recommendation: We recommend that management follow up with DOL to obtain a final decision. We also recommend that management train more staff to help monitor the expenditures requirements timely to mitigate similar issues.
Views of Responsible Officials: The Association’s management acknowledges the finding and is well aware of this issue. Management has discussed with DOL and requested relief from paying back the funds in question. The Association has also trained additional staff members to monitor more closely to ensure the percentage requirements are met on a monthly basis.