U.S. Department of Labor Office of Inspector General

Audit Report

SER-JOBS FOR PROGRESS NATIONAL, INC.,
TRAINING AND TECHNICAL
ASSISTANCE GRANT
 
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Report Title:  SER-Jobs for Progress National, Inc., Training and Technical Assistance (T&TA) Grant

Report Number:  06-97-055-03-340

Issue Date:  November 5, 1997

We conducted a limited scope financial audit of a Training and Technical Assistance (T&TA) grant between the U. S. Department of Labor (DOL) and SER-Jobs for Progress National, Inc. In addition, we attempted to determine what T&TA services SER National provided to local SER offices under the grant. The audit resulted in $54,924 of questioned costs.

SER National used T&TA grant funds as a last resort for financially troubled local SER offices. Our audit disclosed that SER National took control of the Central Los Angeles (LA) SER office when it became insolvent and used $46,322 of T&TA funds to run the day-to-day operations of the office. Yet, ultimately the office closed. The staffing of a local SER office for 9 months before closing the office goes beyond technical assistance. The T&TA grant does not provide for the staffing of local SER offices. Maintaining and closing local offices would appear to be a corporate responsibility.

The T&TA grant was also charged for travel costs when the travel expenses ($3,854) were paid by other parties and when the expenses ($4,748) were for trips relating to corporate activities.

We recommended the Assistant Secretary for Employment and Training (1) disallow the $54,924 questioned costs, and (2) review the purpose of the noncompetitive T&TA grant with SER National and periodically monitor the grantee's performance under the grant to ensure that the grant's purpose is being achieved.

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