The Office of the Comptroller of Puerto Rico issued a qualified opinion of the fiscal operations of the Northwest Local Workforce Development Area (Northwest LWDA). A qualified opinion is issued when the noncompliances, individually or together, are significant but not pervasive.
The Report reveals that the Northwest Local Workforce Development Area did not use $7,391,755 of the funds delegated from 2016 to 2019 for the creation of training and employment opportunities for youth, adults, and dislocated workers. This figure constitutes 49% of the federal funds agreed upon through contracts between the Northwest LWDA and the Department of Economic Development and Commerce (DDEC).
The Workforce Innovation and Opportunity Act (WIOA) funds are administered by the DDEC, which must ensure that they are used in accordance with the Unified State Plan. The municipalities of Aguadilla, Aguada, Añasco, Isabela, Moca, Rincón, and San Sebastián are part of the Northwest LWDA.
The three-finding audit notes that, as of June 30, 2021, the Board of Mayors had not updated the Regulation governing its operation, duties, and responsibilities in accordance with the provisions of the WIOA in force since July 1, 2015. This situation makes it difficult to assign responsibilities in case of irregularities or errors in the operations.
The Report states that the Local Board did not hold four meetings required by the Regulation, 95% of the Minutes were not approved by the Local Board secretary, and it held extraordinary meetings without the required quorum. The Local Board is made up of an executive director and 24 representatives of the private and educational sector of the municipalities that make up the Northwest LWDA.
These deficiencies make it difficult for the Local Board members to communicate, collaborate, and coordinate strategies to meet the needs of workers and employers. In addition, the legality of the Board's decisions or agreements could be questioned.
The Northwest LWDA budget was $4,411,686 in 2017, $5,368,125 in 2018, $5,406,210 in 2019, and rose to $6,413,813 in 2020. This second and final report on the Northwest Local Workforce Development Area covers the period from January 1, 2017 to June 30, 2021.
See Audit Report DA-23-09.
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