Audit Report

This report reflects the findings of the Office of Inspector General at the time that the audit report was issued. More current information may be available as a result of the resolution of this audit by the Department of Labor program agency and the auditee. For further information concerning the resolution of this report's findings, please contact the program agency.

Report Number:  05-98-006-03-385

Issue Date:  September 28, 1998

The School-to-Work Opportunities Act of 1994 provides opportunities for states and localities to establish School-to-Work (STW) systems using Federal funding provided and administered jointly by the U.S. Departments of Education and Labor. Federal funds are to be used as venture capital to underwrite the initial costs of establishing statewide STW systems that will eventually be maintained with other Federal, state, and local resources. Consistent with our commitment to provide technical assistance to the Department, the OIG worked with the National School-to-Work Opportunities Office to develop those elements that are indicative of a sustainable STW system.

The State of Iowa received Federal funding to establish a statewide STW system. The OIG conducted a performance audit on the sustainability of Iowa's STW initiative. Specifically, our objective was to determine if Iowa had institutionalized the elements identified as indicative of a sustainable STW system. Iowa's STW system is administered by the Iowa Department of Economic Development, the Iowa Department of Education, and Iowa Workforce Development.

Our audit disclosed that Iowa had initiated numerous actions that, when fully implemented, should ensure the sustainability of the statewide STW initiative after the expiration of STW Federal funding, slated for September 30, 2000. Some notable examples include: the enactment of State law, the establishment of supportive policies and strategies, and the active interdepartmental participation and leadership of State government.

However, our audit identified three potential limitations where enhancements may be needed to ensure the sustainability of the Iowa's STW system:

• Student participation in STW activities is not a statewide graduation requirement.
• State certification requirements for teachers and guidance counselors lack mandatory STW training.
• The development of Iowa's Integrated Information System (IIS) needs to be expedited.

Iowa officials believe that collaborating with ETA officials on establishing graduation requirements would only aid in promoting the current fear that the Federal and State governments desire to eliminate local control. Furthermore, Iowa officials will submit a recommendation to the State of Iowa Board of Educational Examiners indicating serious consideration be given to adding STW-related training into the State certification criteria regarding new teachers entering the education system.

Both ETA and Iowa officials agree with the third recommendation. ETA officials agree that the timely implementation of a sound data management system is an important component in the evaluation, accountability, and continuous improvement of STW systems.

In consideration of ETA's response and Iowa's response, we have partially resolved the second finding and resolved the third finding. However, the first finding remains unresolved.

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