EIN: 860485021
UEI: MEL8YJ14ZLA5
Audited by: Walker & Armstrong LLP
Oversight agency: 17 [Department of Labor]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on February 3, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by August 3, 2026 (31 days ago).
What is a management decision? →FAC accepted this audit on January 29, 2025 — management decision was due July 29, 2025.
FAC accepted this audit on February 6, 2024 — management decision was due August 6, 2024.
FAC accepted this audit on February 5, 2023 — management decision was due August 5, 2023.
FAC accepted this audit on February 13, 2022 — management decision was due August 13, 2022.
Condition and Context: ARIZONA@WORK SEAZ must track program funds spent on paid and unpaid work experiences and report such expenditures as part of the WIOA Youth financial reporting, as described in 20 CFR 681.590. Criteria, Cause and Effect: 2 CFR 681.590, requires ARIZONA@WORK SEAZ to expend not less than 20 percent of the funds allocated to them to provide the in-school-youth and out- of-school youth with paid and unpaid work experiences. In FY21, ARIZONA@WORK SEAZ expended only 16 percent of the funds granted in award years 2019 and 2020, which is the cause of the insufficient subrecipient monitoring finding. The effect is a federal award finding over compliance with reporting. Recommendation: We recommend that ARIZONA@WORK SEAZ enhance protocols to track and identify all allowable expenditures under the youth program to demonstrate that the mandated 20 percent threshold is met. Management?s Response: See corrective action plan.
Show full finding ▾Hide full finding ▴Condition and Context: ARIZONA@WORK SEAZ must track program funds spent on paid and unpaid work experiences and report such expenditures as part of the WIOA Youth financial reporting, as described in 20 CFR 681.590. Criteria, Cause and Effect: 2 CFR 681.590, requires ARIZONA@WORK SEAZ to expend not less than 20 percent of the funds allocated to them to provide the in-school-youth and out- of-school youth with paid and unpaid work experiences. In FY21, ARIZONA@WORK SEAZ expended only 16 percent of the funds granted in award years 2019 and 2020, which is the cause of the insufficient subrecipient monitoring finding. The effect is a federal award finding over compliance with reporting. Recommendation: We recommend that ARIZONA@WORK SEAZ enhance protocols to track and identify all allowable expenditures under the youth program to demonstrate that the mandated 20 percent threshold is met. Management?s Response: See corrective action plan.
Condition: ARIZONA@WORK SEAZ reported work experience expenditures less than 20 percent of the federal funds allocated to them for in-school-youth and out-of-school youth services for the year ended June 30, 2021. Recommendation: Enhance protocols to track and identify all allowable expenditures under the youth program to ensure that the mandated 20 percent threshold is met. Corrective Action Plan: ARIZONA@WORK SEAZ will enhance its allowable expenditure identification protocol and develop an initiative to actively pursue youth work experience opportunities. Contact Name: Vada Phelps, Executive Director and/or Michelle Huff, Finance Director Anticipated Completion Date: Fully corrected by November 2021.
2020-102
FAC accepted this audit on January 28, 2021 — management decision was due July 28, 2021.
Finding 2020-101 ? Monitoring of Subrecipient and One-Stop Operator CFDA Numbers: 17.259 Program Titles: WIOA Youth Activities Federal Agency: U.S. Department of Labor Award Year: 2019 Award Number: DI19-002208 Compliance Requirements: Subrecipient Monitoring Questioned Costs: None Condition and Context: ARIZONA@WORK SEAZ passed through federal funds to the Center for Academic Success, Inc. (CAS), a related party, as a subreceipient of the WIOA Youth Activities program. In addition, ARIZONA@WORK SEAZ is provided workforce development services by an independent contractor under a One-Stop Operator (OSO) agreement. ARIZONA@WORK SEAZ is required to monitor the subrecipient as well as the OSO. Criteria, Cause and Effect: 20 CFR 683.410 outlines the oversight roles and responsibilities of recipients and subrecipients of federal financial assistance awarded under Title I of the WIOA program. In addition, the Department of Labor (DOL) Training and Employment Guidance Letter (TEGL) 15-16 section 13 indicates that the WIOA requires ARIZONA@WORK SEAZ to conduct monitoring of its OSO. ARIZONA@WORK SEAZ was unable to provide documented evidence that the subreceipient was monitored or that the OSO was monitored in accordance with requirements and/or agreement terms. Lack of formal documented performance and oversight process due to the nature of the service provider relationships occurred and caused the finding. The effect is that .ARIZONA@WORK SEAZ was unable to sufficiently demonstrate that it monitored its subrecipient and OSO. Recommendation: We recommend that ARIZONA@WORK SEAZ formalize the documentation and monitoring performance and evidence maintenance procedures over the subrecipient as well as the OSO. We also recommend that documentation and supporting evidence be maintained to meet audit reperformance standards.
Show full finding ▾Hide full finding ▴Finding 2020-101 ? Monitoring of Subrecipient and One-Stop Operator CFDA Numbers: 17.259 Program Titles: WIOA Youth Activities Federal Agency: U.S. Department of Labor Award Year: 2019 Award Number: DI19-002208 Compliance Requirements: Subrecipient Monitoring Questioned Costs: None Condition and Context: ARIZONA@WORK SEAZ passed through federal funds to the Center for Academic Success, Inc. (CAS), a related party, as a subreceipient of the WIOA Youth Activities program. In addition, ARIZONA@WORK SEAZ is provided workforce development services by an independent contractor under a One-Stop Operator (OSO) agreement. ARIZONA@WORK SEAZ is required to monitor the subrecipient as well as the OSO. Criteria, Cause and Effect: 20 CFR 683.410 outlines the oversight roles and responsibilities of recipients and subrecipients of federal financial assistance awarded under Title I of the WIOA program. In addition, the Department of Labor (DOL) Training and Employment Guidance Letter (TEGL) 15-16 section 13 indicates that the WIOA requires ARIZONA@WORK SEAZ to conduct monitoring of its OSO. ARIZONA@WORK SEAZ was unable to provide documented evidence that the subreceipient was monitored or that the OSO was monitored in accordance with requirements and/or agreement terms. Lack of formal documented performance and oversight process due to the nature of the service provider relationships occurred and caused the finding. The effect is that .ARIZONA@WORK SEAZ was unable to sufficiently demonstrate that it monitored its subrecipient and OSO. Recommendation: We recommend that ARIZONA@WORK SEAZ formalize the documentation and monitoring performance and evidence maintenance procedures over the subrecipient as well as the OSO. We also recommend that documentation and supporting evidence be maintained to meet audit reperformance standards.
2020-001 ? Monitoring of Subrecipient and One-Stop Operator Condition: ARIZONA@WORK SEAZ passed through federal funds to CAS/PYQ, a related party and subrecipient of the WIOA Youth Activities program and was unable to provide documented evidence of its monitoring. In addition, ARIZONA@WORK SEAZ is provided workforce development services by an independent contractor under a One-Stop Operator agreement and was unable to provide documented evidence of its monitoring during the period of audit. Recommendation: Formalize the documentation and monitoring performance and evidence maintenance procedures over the CAS/PYQ subrecipient as well as the OSO. Ensure all documentation and supporting evidence is maintained to meet audit reperformance standards Corrective Action Plan: ARIZONA@WORK SEAZ will formalize its documentation and monitoring subrecipient and OSO processes. The WIOA Fiscal and Procurement Administration On-Site Monitoring Guide will be utilized to document and evidence subrecipient monitoring. In addition, an internally developed OSO compliance checklist will be utilized to document and evidence OSO monitoring in accordance with the OSO agreement terms. Supporting documentation will be maintained to facilitate the reperformance of the subrecipient and OSO monitoring procedures. Contact Name: Vada Phelps, Executive Director and/or Michelle Huff, Finance Director Anticipated Completion Date: Fully corrected by January 4, 2021.
Finding 2020-102 ? Work Experience (WEX) Expenditures CFDA Numbers: 17.259 Program Titles: WIOA Youth Activities Federal Agency: U.S. Department of Labor Award Year: 2019 Award Number: DI19-002208 Compliance Requirements: Reporting Questioned Costs: None Condition and Context: ARIZONA@WORK SEAZ must track program funds spent on paid and unpaid work experiences and report such expenditures as part of the WIOA Youth financial reporting, as described in 20 CFR 681.590. Criteria, Cause and Effect: 2 CFR 681.590, requires ARIZONA@WORK SEAZ to expend not less than 20 percent of the funds allocated to them to provide the in-school-youth and out-of-school youth with paid and unpaid work experiences. In FY20, ARIZONA@WORK SEAZ expended only 6 percent of the funds granted in award year 2019, which is the cause of the insufficient reporting finding. The effect is a federal award finding over compliance with reporting. Recommendation: We recommend that ARIZONA@WORK SEAZ enhance protocols to track and identify all allowable expenditures under the youth program to demonstrate that the mandated 20 percent threshold is met.
Show full finding ▾Hide full finding ▴Finding 2020-102 ? Work Experience (WEX) Expenditures CFDA Numbers: 17.259 Program Titles: WIOA Youth Activities Federal Agency: U.S. Department of Labor Award Year: 2019 Award Number: DI19-002208 Compliance Requirements: Reporting Questioned Costs: None Condition and Context: ARIZONA@WORK SEAZ must track program funds spent on paid and unpaid work experiences and report such expenditures as part of the WIOA Youth financial reporting, as described in 20 CFR 681.590. Criteria, Cause and Effect: 2 CFR 681.590, requires ARIZONA@WORK SEAZ to expend not less than 20 percent of the funds allocated to them to provide the in-school-youth and out-of-school youth with paid and unpaid work experiences. In FY20, ARIZONA@WORK SEAZ expended only 6 percent of the funds granted in award year 2019, which is the cause of the insufficient reporting finding. The effect is a federal award finding over compliance with reporting. Recommendation: We recommend that ARIZONA@WORK SEAZ enhance protocols to track and identify all allowable expenditures under the youth program to demonstrate that the mandated 20 percent threshold is met.
2020-002 ? Work Experience (WEX) Expenditures Condition: ARIZONA@WORK SEAZ reported work experience expenditures less than 20 percent of the federal funds allocated to them for in-school-youth and out-of-school youth services for the year ended June 30, 2020. Recommendation: Enhance protocols to track and identify all allowable expenditures under the youth program to ensure that the mandated 20 percent threshold is met. Corrective Action Plan: ARIZONA@WORK SEAZ will enhance its allowable expenditure identification protocol and develop an initiative to actively pursue youth work experience opportunities. Contact Name: Vada Phelps, Executive Director and/or Michelle Huff, Finance Director Anticipated Completion Date: Fully corrected by June 30, 2021.
FAC accepted this audit on February 18, 2020 — management decision was due August 18, 2020.
Condition and Context: ARIZONA@WORK SEAZ reimburses employers for on-the-job training (OJT) expenses based on an agreed upon percentage of payments made to the participating employees. During our testing of these reimbursements, we noted that an ARIZONA@WORK SEAZ employee prepared invoices with vendor logos of the participating employers. While payroll records supported the underlying personnel costs incurred by the participating vendors, the invoices had the appearance of being created by the participating vendors, not ARIZONA@WORK SEAZ. The ARIZONA@WORK SEAZ employee calculated reimbursement amounts and created these invoices as an administrative service to the vendors. The intent was to streamline the process for payment as ARIZONA@WORK SEAZ?s finance department will only process payment when presented with an approved invoice, not just the underlying payroll records. This is a repeat finding from the prior year due to the timing in discovery of the issue. Upon bringing this matter to management?s attention, immediate action was taken to stop the practice of preparing invoices on behalf of vendors.
Show full finding ▾Hide full finding ▴Condition and Context: ARIZONA@WORK SEAZ reimburses employers for on-the-job training (OJT) expenses based on an agreed upon percentage of payments made to the participating employees. During our testing of these reimbursements, we noted that an ARIZONA@WORK SEAZ employee prepared invoices with vendor logos of the participating employers. While payroll records supported the underlying personnel costs incurred by the participating vendors, the invoices had the appearance of being created by the participating vendors, not ARIZONA@WORK SEAZ. The ARIZONA@WORK SEAZ employee calculated reimbursement amounts and created these invoices as an administrative service to the vendors. The intent was to streamline the process for payment as ARIZONA@WORK SEAZ?s finance department will only process payment when presented with an approved invoice, not just the underlying payroll records. This is a repeat finding from the prior year due to the timing in discovery of the issue. Upon bringing this matter to management?s attention, immediate action was taken to stop the practice of preparing invoices on behalf of vendors.
Corrective Action Planned: ARIZONA@WORK SEAZ will adhere to its policy of requiring approved vendor invoices. Management has approved that in the instance of the OJT program, it is acceptable to receive requests for reimbursements from the vendors in lieu of invoices. As of November 28, 2018, all invoices or reimbursement requests are required to be either mailed or emailed from the vendor directly to the finance department.
2018-101
FAC accepted this audit on February 28, 2019 — management decision was due August 28, 2019.
GSA_MIGRATION
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GSA_MIGRATION
FAC accepted this audit on March 6, 2018 — management decision was due September 6, 2018.
FAC accepted this audit on March 16, 2017 — management decision was due September 16, 2017.
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