Office of Inspector General


U.S. Department of Labor
Office of Audit
 

 

PROFILING JTPA'S
AFDC PARTICIPANTS
 
 
 
 
 
   Issue Date:  May 7, 1998
Report No.:  06-98-002-03-340
 

 Profiling JTPA Title II-A's AFDC Participants
For the Period
July 1, 1995 through June 30, 1996


Prepared by
United States Department of Labor
Office of Inspector General
 
 
 
Big-A
 
 
 
 
Office of Inspector General
Office of Audit
Report No. 06-98-002-03-340
Date Issued:  May 7, 1998
 

 

May 7, 1998
 
 

MEMORANDUM FOR:             RAYMOND J. UHALDE
                                                      Acting Assistant Secretary for
                                                          Employment and Training
 

                                                              / s /
FROM:                                         JOHN J. GETEK
                                                      Assistant Inspector General
                                                          for Audit

SUBJECT:                                 Profiling JTPA's AFDC Participants
                                                      Final Audit Report No. 06-98-002-03-340

The attached subject final report is submitted for your information. Because the report is informational only, it does not include recommendations and requires no response. If you request additional information or would like a personal briefing on the report's contents, please let me know.

Attachment
 


 Table of Contents
 
 
                                                                                                                   Page No.

Acronyms and Abbreviations                                                                                               ii

Executive Summary                                                                                                                 1

Background                                                                                                                                4

Audit Objectives                                                                                                                        6

Chapter 1:           Training and services provided to the AFDC
                          recipients while enrolled in JTPA Title II-A.                             7

Chapter 2:           Program outcomes for AFDC recipients.                                        13

Chapter 3:         Characteristics of JTPA's AFDC participants                                23

Appendix I -        Scope and Methodology                                                                      29

                          Statistical Sampling Methodology                                                      30

Appendix II -       ETA's Response to Draft Report                                                       31
 
 

i

Acronyms and Abbreviations
 
 
 
AFDC Aid to Families with Dependent Children
CRT Classroom Training
DOL United States Department of Labor
EA Emergency Assistance
ETA Employment and Training Administration
JOBS Job Opportunities and Basic Skills
JTPA Job Training Partnership Act
MIS Management Information System
OIG Office of Inspector General
OJT On-the-job Training
PRWORA Personal Responsibility and Work Opportunity Reconciliation Act
PY Program Year
SDA Service Delivery Area
SPIR Standardized Program Information Record
TANF Temporary Assistance for Needy Families
WE Work Experience
WtW Welfare to Work
 
ii

Executive Summary
 
 

We performed an audit of the Job Training Partnership Act (JTPA) Title II-A program's efforts to serve the Aid to Families with Dependent Children (AFDC) population by evaluating services received and outcomes obtained for AFDC recipients who terminated from the JTPA program during the period July 1, 1995 through June 30, 1996.

Our purpose was to establish some benchmarks which the Employment and Training Administration (ETA), Office of Inspector General (OIG), and others could use to evaluate future programs' progress in serving AFDC participants.  We:

In summary, while JTPA provided occupational skills training to only 32,238 of 76,246 participants, the audit evidence shows that those participants who received occupational skills training had higher placement rates with employers, higher earnings in the year following JTPA termination, and were more attached to a single employer. Furthermore, while only a small percentage of those with math/reading skill deficiencies received nonoccupational skills training to address those needs, those who received such training had higher earnings than those who did not.

Services provided to AFDC recipients (See chapter 1.)

Of the 76,246 participants:

 


Post-JTPA outcomes for AFDC recipients (See chapter 2.)

AFDC status:  Of the 76,246 participants, 52,238 (69 percent) were not receiving AFDC at the time of our audit fieldwork. However, the reason these participants' AFDC was stopped does not appear to be because of the participants' post-JTPA earnings. Of the 52,238 who were no longer receiving AFDC, 15 percent had no earnings, and 44 percent had no earnings or earnings of less than $5,000 for the four quarters following termination.

Earnings capacity:  For the four quarters following the quarter of JTPA program termination, 23 percent of all AFDC recipients had no earnings, 40 percent had no earnings or earned less than $2,500, and 54 percent had no earnings or earned less than $5,000. Participants who received JTPA-funded occupational skills training tended to have more earnings in the year following the quarter of termination from the JTPA program than those participants who received only nonoccupational training or objective assessment. Furthermore, participants who received nonoccupational skills training to address reading and math skills deficiencies earned more than those who did not receive the training.

Participants' attachment to the labor market: Of the 76,246 participants, 29,875 had wages in all four quarters following JTPA program termination. Almost half (13,637) of these participants had wages with only one employer, and 66 percent (19,685) had wages with only one or two employers. Of these 19,685 participants, 73.5 percent received occupational training. These 19,685 participants represent 26 percent of the AFDC participants terminated during our audit period.

Placement rates into unsubsidized employment: Of the 76,246 participants, the Service Delivery Areas (SDA) claimed placements for 38,364 participants (50 percent). We found 69 percent of the participants who received occupational skills training were placed, 39 percent of those who received only nonoccupational skills training were placed, and 4 percent of those who received no training were placed.

Characteristics of AFDC recipients (See chapter 3.)

The typical AFDC recipient enrolled in the JTPA program was an unemployed, single mother under 30 years of age with one dependent, little or no previous work history, a 12th grade education or GED, and receiving between $250 and $500 per month in AFDC benefits.

The vast majority (76 percent) of JTPA's AFDC recipients had a high school diploma/GED education or higher, although the reading and math skills for these participants did not reflect the higher level of education; i.e, of the high school graduate/GED education level participants, 45 percent had math skills and 14 percent had reading skills below the 9th grade level.

Further, 9 percent of the participants had no barriers, and 71 percent had two or fewer barriers to employment documented in the SPIR or SDAs' management information systems (MIS). 


 

2


ETA's Response to Draft Report and OIG's Conclusion

ETA's response to the draft report did not refute any of the facts presented in the report. However, ETA did suggest some changes to report presentation including a better differentiation between the welfare participants served by the JTPA and the Welfare-to-Work (WtW) programs. ETA believes that because of the different types of activities allowed by the JTPA and WtW programs and because WtW is supposed to serve the hard-to-serve welfare recipients, the data presented in our report may not be adequate benchmarks to use to evaluate the WtW program's performance. ETA also suggested eliminating subjective statements from the report to allow the readers to draw their own conclusions.

We have considered ETA's response and have made some changes in the report based on their comments.

ETA's entire response to the draft report is presented at appendix II, page 31.
 
 

3

Background
 
 
Welfare reform legislation passed by Congress in 1996 has focused greater attention on various job training programs funded by the Federal Government and the impact those programs had on recipients of Aid to Families with Dependent Children (AFDC), now Temporary Assistance for Needy Families (TANF).

On August 22, 1996, the President signed the "Personal Responsibility and Work Opportunity Reconciliation Act" (PRWORA), a comprehensive welfare reform bill. PRWORA established the TANF program to supersede three programs:

On August 5, 1997, the President signed the Balanced Budget Act of 1997. This legislation amended certain TANF provisions and authorized the Secretary of Labor to provide Welfare to Work (WtW) grants to states and local communities for transitional employment assistance to move the hard-to-employ TANF welfare recipients into unsubsidized jobs and economic self-sufficiency. The WtW program's ultimate objective is to move individuals into and keep individuals in lasting, unsubsidized employment.

Pursuant to Secretary of Labor's Order No. 4-75, the Assistant Secretary for Employment and Training has been delegated the responsibility to carry out the WtW policies, program, and activities for the Secretary.

Congress has authorized for Fiscal Years (FY) 1998 and 1999, a total of $3 billion for the WtW program. Consequently, ETA's FY 1998 budget includes approximately $1.5 billion for the WtW; approximately $1.1 billion for formula grants to states, with the remainder being awarded through competitive grants. A similar amount will be available for FY 1999.

Before the enactment of the WtW program, Title II-A of the JTPA was the primary DOL program used to provide training and services to disadvantaged adults, including AFDC recipients. Section 201 of the JTPA identifies the purposes and establishes a set of goals toward which programs should be designed.

It is the purpose of this Act to establish programs to prepare youth and adults facing serious barriers to employment for participation in the labor force by providing job training and other services that will result in increased employment and earnings, increased educational and occupational skills, and decreased welfare dependency, thereby improving the quality of the work force and enhancing the productivity and competitiveness of the Nation. [Emphasis added.]
 
4


Although decreased welfare dependency has been one of JTPA's goals since the legislation was passed in 1982, JTPA Title II-A has focused on the entire economically disadvantaged population which is not limited to AFDC recipients or recipients of other forms of welfare. Consequently, the population served by the JTPA Title II-A encompasses more than AFDC recipients.

The DOL has not established specific performance measures for directly evaluating the JTPA program's progress towards accomplishing the goal of "decreased welfare dependency"; however, employment and earnings measures at followup have been established for adult welfare participants. ETA's position is that employment and earnings are key to whether there is a decreased welfare dependency. This audit does not establish performance measures for evaluation purposes. Nor does the audit determine whether the Service Delivery Areas (SDA), states, or DOL's performance is good or bad in accomplishing this goal.

For reporting program accomplishments, DOL established a uniform management information system, the Standardized Program Information Record (SPIR), to track individual participant's results. The SPIR includes participant characteristics, types of training and services received, and participant outcomes for all participants terminated during the program year (PY). The SPIR began tracking participant data during PY 1994. PY 1995 was the first complete year; therefore, not all problems had been resolved with the new system for our audit period.

PY 1995 SPIR data indicated approximately 636,000 participants were reported terminated from all JTPA programs of whom over 223,000 were enrolled in the Title II-A program. Approximately 35 percent (77,000) of those were receiving AFDC at the time of their JTPA enrollment. Selections of our audit sites and participants' samples were based on this information. (See appendix I, page 30 for audit sampling information.)
 
 

5

Audit Objectives
 
 
With TANF's work first objective and WtW's objective to move individuals into and keep individuals in lasting unsubsidized employment, coupled with the fact that the WtW program is in its early stage of implementation, the Office of Inspector General (OIG) decided to review DOL's efforts, through the Job Training Partnership Act (JTPA) program, to serve AFDC (now TANF) recipients.

This audit focused on training and supportive services and the impact those services had on AFDC recipients enrolled under JTPA Title II-A.

Our audit objective was to provide the Employment and Training Administration with information on the JTPA service providers' efforts in serving the AFDC population by establishing certain benchmarks which ETA could use to evaluate future programs' (both JTPA and WtW) progress in serving TANF recipients. We understand that the welfare participants to be served by the WtW program are supposed to be the hard-to-serve, whereas JTPA may serve any welfare participant. Also, JTPA can provide a variety of training and supportive services to participants before the participants find employment, whereas WtW's emphasis is on placing participants in jobs first, then providing services necessary to keep the participants employed. Nevertheless, we believe that the information presented in this report will provide some basis to evaluate not only future JTPA programs' efforts in serving welfare participants but also the WtW program's efforts.

We established these benchmarks by evaluating a sample of AFDC recipients who terminated from the JTPA program during the period July 1, 1995 through June 30, 1996. We:

The audit universe consisted of 77,026 participants identified in the SPIR as being AFDC recipients. We selected a random sample of 1,164 participants. We found 10 duplicate records and 9 non-AFDC participants in our sample. These 19 invalid AFDC records represented 780 participant records in the SPIR. Therefore, our revised 1,145 participant sample results were projected to a revised population of 76,246 JTPA Title II-A AFDC participants. The statistical data presented in this report relate to the revised population of 76,246 participants.

For an explanation of the statistical sampling methodology, see appendix I, page 30.

 
6

Chapter 1:  Training and Services Provided to the AFDC Recipients While Enrolled in JTPA Title II-A 

 
Of the 76,246 participants in the universe, the JTPA program provided training (occupational and nonoccupational) to 42,488 participants (56 percent). An additional 19,005 participants (25 percent) appear to have received some type of training from other funding sources (JOBS, Pell grants, etc.). Consequently, 14,753 JTPA AFDC recipients (19 percent) received no training from any source, although 774 of these received some JTPA-funded supportive services. Therefore, 13,979 participants (18.3 percent) received no services other than objective assessment.

While 62,267 participants received some services, JTPA-funded services were provided to only 43,262 participants. Conversely, 32,984 participants (43 percent) received no JTPA-funded services.

Figure Figure 1A at left shows the training received by JTPA's AFDC recipients by funding source.

We were able to identify some non-JTPA funding sources (JOBS, Pell grants, etc.) for 8,974 of the 19,005 participants whose training is shown as non-JTPA- funded.
 

 
 
 
 
 
 
 
 
 
 
 
 
 

However, because some participant files were either not available or the participant files were incomplete, we were unable to determine the specific source of funding for the training 10,031 participants received. Consequently, we have classified these 10,031 participants' training as non-JTPA-funded.
 

7


We did not have access to sufficient records to determine the types of training provided to the 19,005 participants; however, we were able to determine that 9,759 (51 percent) received both occupational and nonoccupational skills training; 3,449 (18 percent) received only occupational skills training; and 5,797 (31 percent) received only nonoccupational skills training.

As Figure 1A shows, 76 percent of the participants (15,098 + 17,140) who received JTPA- funded training did receive occupational skills training such as classroom (CRT), on-the-job (OJT) and work experience (WE), while some also received nonoccupational training. However, these participants represent only 42 percent (32,238 of 76,246) of the participant population.

JTPA-funded occupational skills training provided
The specific types of JTPA-funded occupational skills training in which the 32,238 AFDC participants were enrolled are identified on figure 1B below.
 

 
Figure 1B
 

JTPA-funded nonoccupational skills training provided

JTPA funded nonoccupational training for 27,390 participants (10,250 nonoccupational only; 17,140 nonoccupational and occupational). Some of these 27,390 individuals received more than one type of nonoccupational skills training since 44,237 nonoccupational skills training activities were identified. The types of nonoccupational skills training activities provided are shown on the following table 1C by participants' educational levels.
 

8

 
Table 1C 
Number of Participants Receiving Nonoccupational Training Activities 
by Educational Level
Type  
Training
< HS 
Graduate
HS Grad/ 
GED

Post HS
Completed 
VOC Ed
College  
Grad

Total
Job Search 2,065 4,647 1,876 806 296 9,690
Basic Skills 5,629 5,955 2,411 620 41 14,656
Pre-employ skills 1,480 2,223 768 149 123 4,743
Math Training 624 702 558 155 2,039
Computer literacy 641 1,875 986 214 41 3,757
GED Prep 2,541 7 7 47 2,602
Reading Training 283 159 249 143 834
Other 1,988 1,902 1,765 154 107 5,916
Total 15,251 17,470 8,620 2,288 608 44,237
% 34.5% 39.5% 19.5% 5.2% 1.4% 100.0%
 
 
 
One would expect that those individuals with lower educational levels would require some nonoccupational training. Yet, as shown above, approximately 65.5 percent of the nonoccupational training was given to individuals with high school diploma/GED educational levels or higher. However, as will be discussed later in chapter 3, many of the participants with higher level education had math and reading skills below the 10th grade level.

During our audit fieldwork, we interviewed SDA officials and staff to determine what they perceived as problems in implementing the new WtW grants to serve TANF recipients. Many of the respondents thought that WtW would inherit most of the hard-to-serve welfare clients with barriers that the states' TANF agencies had failed to place into jobs. The most significant economic and social barriers identified by the majority of SDAs included:

In addition to these economic and social barriers, they also identified educational and experience barriers. The three most mentioned barriers were:
 
9

If the individuals are going to continue working upon placement into a job, much less move into higher-paying positions, the SDAs believe these educational and experience skills deficiencies must be addressed. Consequently, for the 76,246 participants, we evaluated the JTPA-funded nonoccupational training provided to those participants who had reading and math skills deficiencies and certain barriers to employment to determine if the participants' skills deficiencies or barriers were addressed by JTPA.

Nonoccupational training given to address math/reading skills deficiencies

We have identified all participants who had math and reading skill levels below the 10th grade level and determined if the nonoccupational training they received addressed these skill deficiencies. We found that 36,951 of the 76,246 participants (49 percent) had math skills deficiencies while 16,915 (22 percent) had reading skills deficiencies. We then analyzed the following specific and related nonoccupational training activities that could possibly address these skill deficiencies:

Figure 1DOur analyses are shown in the following figures 1D and 1E:

As figure 1D shows, only 13,835 of the 36,951 participants (37.4 percent) with math skills deficiencies received nonoccupational skills training to address the deficiencies. In fact, only 1,680 (4.5 percent) got specific math skills training.
 
 
 
 
 
 
 
 
 
 
 
 

10

 
Figure 1ELikewise, figure 1E shows that for the 16,915 participants with reading skills deficiencies, only 5,814 (34.4 percent) received reading- related nonoccupational skills training; only 299 (1.8 percent) received specific reading skills training.
 
 
 
 
 
 
 
 
 
 
 

Nonoccupational training given to address certain barriers

In addition to addressing math and reading skill deficiencies, we identified participants with certain barriers which we believe may be addressed by nonoccupational skills training. In addition to those participants with barriers identified in the SPIR, we also included those participants with these barriers we identified through audit examination of participant records. We determined:

It does not appear, from the above statistics regarding nonoccupational training to address math and reading skills deficiencies and barriers to employment, that the JTPA program is adequately addressing those participant needs.

Other nontraining services provided to JTPA's AFDC recipients

Of the 14,753 participants who did not receive any training from any source, 13,979 did not receive services other than objective assessment.
 

11


The JTPA program also provided supportive services to 37,479 of the 76,246 participants. This included the remaining 774 participants who received no training and 36,705 participants who received training (some JTPA and non-JTPA funded). 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 

In summary, of the 76,246 AFDC recipients, 43,262 (57 percent) received JTPA-funded assistance. Of the 43 percent who received no JTPA-funded employment and training services, many were served by JTPA were receiving training/services from other funding sources.

Furthermore, it does not appear that skills deficiencies/barriers to employment that may be addressed by nonoccupational skills training are being sufficiently addressed, particularly since SDAs indicate they see this as a major problem in the upcoming WtW program for which the goal is to move hard-to-serve TANF welfare recipients into and keep them in lasting unsubsidized employment. We recognize that training under WtW is restricted to post-placement services only. However, if WtW's goal is to move individuals into and keep individuals in lasting unsubsidized employment, basic skill deficiencies and barriers to employment must be addressed.
 

12

Chapter 2:  Program Outcomes for AFDC Recipients



This chapter shows the JTPA program outcomes for AFDC recipients who were terminated from JTPA during PY 1995 by showing participants':
We will also display earnings outcomes and participant placement rates by type of JTPA services the participants received.

Finally, we will compare earnings of those participants whose math and reading skill deficiencies were addressed by nonoccupational training with those whose needs were not addressed.

Participants' post-JTPA AFDC status

During our audit fieldwork between October and December 1997, we confirmed the welfare status of the 76,246 participants. We found that 52,238 of the 76,246 participants (69 percent) were not receiving AFDC at the time of our confirmation process. Our confirmations occurred between 15 to 18 months after the end of PY 1995. Therefore, our results do not show any participants who may have stopped receiving AFDC after JTPA termination but who were again receiving AFDC at the time of our audit, nor do the results show those participants who were off AFDC at the time of our confirmation but later may have started receiving AFDC again.

We were not able to determine why the participants were no longer receiving AFDC, only that they were not. There could be many reasons why the AFDC was terminated. However, it does not appear the AFDC was terminated because of the participants' post-JTPA earnings. Of the 52,238 who were no longer receiving AFDC, 15 percent had no wage record for the four quarters following termination; 31 percent had no earnings or earnings of less than $2,500; and 44 percent had no earnings or earnings of less than $5,000.

The following discussion on JTPA's AFDC recipients' post-JTPA earnings is further evidence that earnings do not appear to be the reason these participants stopped receiving AFDC.
 

13


Participants' post-JTPA program earnings

Our audit results show that for the four quarters following the quarter of termination, 23 percent of all AFDC recipients enrolled in JTPA had no earnings at all, 40 percent had no earnings or earned less than $2,500, and 54 percent had no earnings or earned less than $5,000 (see table 2A). Our audit results also revealed that participants who received JTPA-funded occupational skills training tended to have more earnings in the year following the quarter of termination from the JTPA program than those participants who received only nonoccupational training or objective assessment.

The following table 2A shows the individual levels of earnings for all participants. Subsequent tables show earnings levels by type of JTPA services received -- occupational training (table 2B); nonoccupational training (table 2C); and objective assessment only (table 2D).

 
 
Table 2A  
Wages Earned in the Four Quarters  
Following JTPA Program Termination
Wage Range Total Participants % Cumulative %
No wages  17,368 22.8% 22.8%
$1 - 2500 13,453 17.6% 40.4%
$2501 - 5000  10,058 13.2% 53.6%
$5001 - 7500 6,478 8.5% 62.1%
$7501 - 10000 6,647 8.7% 70.8%
$10001 - 20000 17,662 23.2% 94.0%
$20001 - 30000 3,531 4.6% 98.6%
Over $30000 1,049 1.4% 100.0%
Total 76,246 100.0%
 
 
14

 
 
Table 2B 
Wages Earned in the Four Quarters Following JTPA Program  
Termination by Type of JTPA-funded Occupational Training
CRT OJT WE TOTAL
Wage Range No. % No. % No. % No. % Cum. %
No wages  6,003 21.3% 249 8.7% 0 0.0% 6,252 19.4% 19.4%
$1 - 2500 2,514 8.9% 635 22.2% 371 29.7% 3,520 10.9% 30.3%
$2501 - 5000  3,185 11.3% 462 16.2% 0 0.0% 3,647 11.3% 41.6%
$5001 - 7500 2,434 8.7% 192 6.7% 107 8.6% 2,733 8.5% 50.1%
$7501 - 10000 2,913 10.4% 77 2.7% 107 8.6% 3,097 9.6% 59.7%
$10001 - 20000 8,032 28.6% 967 33.9% 543 43.4% 9,542 29.6% 89.3%
$20001 - 30000 2,424 8.6% 76 2.7% 123 9.8% 2,623 8.1% 97.4%
Over $30000 628 2.2% 196 6.9% 0 0.0% 824 2.6% 100.0%
Total 28,133 100.0% 2,854 100.0% 1,251 100.0% 32,238 100.0%
 
 
 
Of the 28,133 classroom training participants, 7,860 also had some other occupational training (e.g., OJT or work experience).

As shown on table 2B above, approximately 19 percent of AFDC participants who received JTPA-funded occupational training had no reported earnings for the year immediately following their termination from the JTPA program, 30 percent had no earnings or annual earnings under $2,500, and 42 percent had no earnings or annual earnings under $5,000.
 

15


 The following table shows earnings for participants who received only nonoccupational skills training:
 
 
Table 2C 
Wages Earned in the Four Quarters following Program Termination for Participants Who Received  
JTPA-Funded Nonoccupational Skills Training 
Wage Range Participants % Cumulative %
No wages  2,392 25.3% 25.3%
$1 - 2500 1,834 19.4% 44.6%
$2501 - 5000  1,083 11.4% 56.1%
$5001 - 7500  944 10.0% 66.1%
$7501 - 10000 848 9.0% 75.0%
$10001- 20000 2,169 22.9% 97.9%
$20001 - 30000 155 1.6% 99.6%
Over $30000  41 0.4% 100.0%
Total 9,466 100.0%
 
 
 
This table shows that those individuals who received only nonoccupational skills training did not have the same earnings capacity as those who received some occupational skills training (see table 2B), yet they did have more earnings capacity than those who received only objective assessment (as shown on the following table 2D).
 
16

 
 
Table 2D 
Earnings For Participants Who Received  
Only Objective Assessment
Wage Range Participants % Cumulative %
No wages  4,439 31.8% 31.8%
$1 - 2500 3,482 24.9% 56.7%
$2501 - 5000  2,176 15.6% 72.2%
$5001 - 7500  1,154 8.3% 80.5%
$7501 - 10000 906 6.5% 87.0%
$10001- 20000 1,522 10.9% 97.9%
$20001 - 30000 158 1.1% 99.0%
Over $30000  142 1.0% 100.0%
Total 13,979 100.0%
 
In summary, our audit results revealed that participants who received JTPA-funded occupational skills training tended to have more earnings in the year following the quarter of termination from the JTPA program than those participants who received only nonoccupational training or objective assessment. The comparison of the earnings capacity for the three groups of participants provided in tables 2B through 2D is graphically displayed in figure 2E.
 
Figure 2E
 
17


Post-JTPA earnings for those who did/did not have skill deficiencies addressed by nonoccupational training

As discussed in chapter 1, the JTPA program did not always provide nonoccupational skills training to address math and reading skills deficiencies. We identified 36,951 participants who had math skills deficiencies of whom 13,835 received direct or related nonoccupational skills training to address the deficiencies. We also identified 16,915 participants with reading skills deficiencies of whom 5,814 received direct or related training to address the skills deficiencies. Figures 2F and 2G demonstrate that, where nonoccupational training was provided to address the math and reading skills deficiencies, the participants' earning capacity was higher than those who did not receive the training.
 

Figure 2FAs figure 2F shows, 30 percent of those who received math-related training earned over $10,000 as opposed to 22 percent for those who did not receive such training; 47 percent of those who received the training earned more than $5,000 as opposed to 39 percent for those who did not.
 
 
 
 
 
 

 
 
 
 
 
Figure 2GLikewise, figure 2G shows that 28 percent of those who received reading-related training earned over $10,000 as opposed to 14 percent for those who did not; 37 percent of those who received the training earned more than $5,000, as opposed to 27 percent for those who did not.
 
 

 
 
 
 
 
 
 
 
 

18


Participants' attachment to the labor market

The ultimate goal of the WtW program is to move individuals into and keep individuals in lasting unsubsidized employment. To evaluate the JTPA Title II-A program's success in accomplishing this goal for AFDC recipients, we analyzed the number of different employers the AFDC recipients had wages with in the four quarters following JTPA program termination. The following table 2H displays the results for the 58,878 participants (of 76,246) who had wages in the four quarters following termination:

 
 
Table 2H 
Number of Employers Participants Had in Four Quarters  
Following JTPA Program Termination
Number of Employers
Annual Wage 
After Termination
1 2 3 4 5 6+ Total
$1 - 2,500 8,042 2,455 2,180 640 13 123 13,453
$2,501 - 5,000 4,286 3,122 2,087 383 164 16 10,058
$5,001 - 7,500 2,724 998 1,322 886 158 390 6,478
$7,501 - 10,000 2,722 1,915 1,427 495 16 72 6,647
$10,001 - 20,000 9,688 3,561 1,718 1,715 129 851 17,662
$20,001 - 30,000 2,218 694 613 6 0 0 3,531
Over $30,000 427 480 142 0 0 0 1,049
Total 30,107 13,225 9,489 4,125 480 1,452 58,878
% 51.1% 22.5% 16.1% 7.0% 0.8% 2.5% 100.0%
 
 
This table indicates that for those that had wages, more than half had only one employer, and 74 percent only worked for one or two employers. This table, taken on its own, would indicate that the participants are creating an attachment to an employer rather than skipping from job-to-job. Yet, the following table 2I indicates that only 29,875 of the 58,878 participants (50.7 percent) had wages in all four quarters. For those 29,875 participants, the number of employers breaks down as follows:
 
19

 
 
Table 2I 
Number of Employers Participants Had in Four Quarters  
Following JTPA Program Termination 
for Those Participants Who Had Wages in All Four Quarters
Number of Employers
Annual Wage 
After Termination
1 2 3 4 5 6+ Total
$1 - 2,500 32 196 241 222 6 107 804
$2,501 - 5,000 487 76 1,026 12 22 0 1,623
$5,001 - 7,500 981 542 793 658 16 390 3,380
$7,501 - 10,000 1,408 1,359 994 463 16 72 4,312
$10,001 - 20,000 8,379 2,923 1,702 1,709 129 851 15,693
$20,001 - 30,000 1,923 472 613 6 0 0 3,014
Over $30,000 427 480 142 0 0 0 1,049
Total 13,637 6,048 5,511 3,070 189 1,420 29,875
% 45.6% 20.2% 18.4% 10.3% 0.6% 4.8% 100.0%
 
 
 
This table shows that almost 46 percent of participants who had wages in all four quarters following termination had wages with only one employer, and 66 percent had wages with one or two employers. Yet, the 13,637 participants with only one employer represent only 23 percent of the 58,878 participants who had some wages during the four quarters following termination and 18 percent of the 76,246 participants. While this accomplishment may be a step in the right direction, it appears more must be done to keep individuals in lasting, unsubsidized employment.

The following table 2J breaks down those 19,685 participants who had only one or two employers (from table 2I) by type of services the JTPA program provided to attempt to identify the types of services that positively impact employer attachment.
 

20

Table 2J 
Number of Participants Who Had Wages in All Four Quarters 
With One or Two Employers  
by Type JTPA Service Received

Annual Wage  
After Termination

Occupational  
Training

Nonoccupational  
Training
Supportive  
Services 
Only

Assessment 
Only


Total
$1 - 2,500 196 32 0 0 228
$2,501 - 5,000 337 178 0 48 563
$5,001 - 7,500 1,126 275 0 122 1,523
$7,501 - 10,000 1,831 760 7 169 2,767
$10,001 - 20,000 8,170 2,237 142 753 11,302
$20,001 - 30,000 2,135 244 0 16 2,395
Over $30,000 682 83 0 142 907
Total 14,477 3,809 149 1,250 19,685
% 73.5% 19.4% 0.8% 6.4% 100.0%
 
 
Table 2J shows that those who received occupational skills training were less likely to jump from job-to-job; i.e., they were more attached to a particular employer.

Participant placement rates into unsubsidized employment

We evaluated the SDAs' reported participant placements to compare participant placement rates by type of services received. Of the 76,246 participants, the SDAs reported placements for 38,364 participants (50 percent). We found that 31,689 of these placements (83 percent) were for participants who received occupational skills training, 5,918 placements (15 percent) were for those who received only nonoccupational skills training, and 577 (2 percent) were for those who received no training. 



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We found 69 percent of the 46,230 participants who received occupational skills training were placed, 39 percent of the 15,263 participants who received only nonoccupational skills training were placed, and 4 percent of those 14,753 participants who received no training were placed. 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

In summary, while JTPA provided occupational skills training to only 32,238 of 76,246 participants, the audit evidence shows that those participants who received occupational skills training had higher placement rates with employers, had higher earnings in the year following JTPA termination, and were more attached to a single employer. Furthermore, while only a small percentage of those who had math and reading skill deficiencies received nonoccupational skills training to address their needs, those who did receive training had higher earnings than those who did not. 


 
22

Chapter 3
 
 
This chapter presents the characteristics of AFDC recipients who were terminated from the JTPA program between July 1, 1995 and June 30, 1996. For the 76,246 participants, we analyzed the following information for the participants at the time of JTPA enrollment:
The typical AFDC recipient enrolled in the JTPA program was an unemployed, single-parent female under 30 years of age with one dependent, little or no previous work history, a 12th grade education or GED, and receiving between $250 and $500 per month in AFDC benefits.

The vast majority (76 percent) of JTPA's AFDC recipients had a high school diploma/GED education or higher, although the reading and math skills do not appear to reflect the higher level of education. Further, one would expect the hard-to-serve to face multiple barriers to employment, yet 9 percent of the participants had no barriers, 33 percent had one or no barriers, and 71 percent had two or less barriers to employment documented in the SDA's MIS or the SPIR.

Family status

As table 3A below shows, 81 percent of the participants were single parents.

 
 
Table 3A 
Family Status of JTPA's AFDC Recipients
 
 
Gender
Single 
Parent
Parent in 
2 Parent 
Family
Other 
Family 
Member
Not 
Family 
Member

Total
Female 60,163 8,091 0 83 68,337
Male 1,679 6,170 60 0 7,909
All 61,842 14,261 60 83 76,246
 


 
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 Education/Skills Levels

We found that the AFDC participants' educational levels achieved were not necessarily commensurate with math and reading skill levels.

Table 3B below shows that 76 percent of the AFDC participants had either a high school diploma/GED, or higher, educational level. In fact, approximately 32 percent had post-high school education.

 
 
Table 3B 
Participant Educational Level at Enrollment

Level
Number of  
Participants
Cumulative 
Percent
Graduate Level  6 0.0%
College Graduate 1,392 1.8%
Completed Post HS Voc. Education 2,223 4.7%
Post HS (Some College) 20,745 32.0%
HS Graduate or GED 33,418 75.8%
Non-HS Graduate 18,282 99.8%
Unknown 180 100.0%
Totals 76,246
 
 
 
Even though 33,418 of the participants (44 percent) were either high school graduates or GED recipients, the reading and math skills levels for the 33,418 participants reflect substantial skill deficiencies. Of these 33,418 participants, we were able to obtain grade-equivalent math skill levels for 30,197 participants and reading skill levels for 29,337 participants.

 

24

 
 
Table 3C shows the grade-equivalent skill levels for these participants.
 
Table 3C 
Math and Reading Skill Levels for High School Graduate/GED 
Education Level Participants 
 

Grade  
Equivalent

Math Skill Level Reading Skill Level
Number of  
Participants
Cumulative  
Percent
Number of 
Participants
Cumulative 
Percent
0.1 - 4.99 1,312 4.3% 384 1.3%
5.0 - 6.99 3,743 16.7% 960 4.6%
7.0 - 8.99 8,578 45.1% 2,762 14.0%
9.0 - 9.99 3,613 57.1% 3,239 25.0%
10.0 - 11.99 4,205 71.0% 4,763 41.3%
12.0 and above 8,746 100.0% 17,229 100.0%
Totals 30,197 29,337
 
 
 
Figure 3DFigure 3D displays the math and reading grade levels for high school graduates/GED recipients shown in table 3C.

As shown in table 3C and figure 3D, 45 percent of the high school graduate/GED educational level participants had math skills below the 9th grade level; 71 percent were below the 12th grade level. These participants fared somewhat better with reading skills; 14 percent read below the 9th grade level, and 41 percent read below the 12th grade level.
 
 
 

 
 
 
 25


Previous employment history/labor force status

The audit looked at the participants' work history for the 3-year period prior to enrollment in the program (per audit review of participants' files) and labor force status at time of JTPA enrollment (per SPIR). The following graphic displays both. 

Figure 3E

As shown, although approximately 59 percent of the participants had worked in the 3 years prior to JTPA enrollment, 68 percent were not in the labor force at time of enrollment. Labor force status, for SPIR purposes, is determined based on whether the participant has been seeking employment in the 6 months preceding application to the JTPA program. Therefore, an individual's 3-year employment history and labor force status at time of enrollment are not synonymous. The chart above shows that many of the individuals who had a work history in the last 3 years had in the last 6 months (prior to enrollment) not been seeking employment, i.e., for whatever reason they were not attached to the labor market.

Documented participants' employment barriers

Although participants enrolled in the program were to have multiple barriers to employment, the SPIR and SDA documents did not always address what the individual barriers were. Of the 76,246 participants, there were no barriers identified for 6,605 (9 percent) even though many participants had no recent work history, had poor math and reading skills, and were not high school graduates. 


 

26

The JTPA program, as well as the SPIR, identifies specific barriers to employment recognized by ETA. Each state and SDA has the ability to identify additional barriers. The following table 3F shows the specific barriers identified for the 76,246 participants as reported in the SPIR.
 
Table 3F 
Identified Barriers at Date of Enrollment
Barrier Participants
No. Percent
Limited-English language proficiency 1,518 2.0%
Offender 6,044 7.9%
Displaced Homemaker 6,296 8.3%
Homeless 623 0.8%
Lacked sufficient work history 43,746 57.4%
Long-term AFDC recipient 36,888 48.4%
Substance abuser 2,189 2.9%
Other (State/SDA Identified) 49,570 65.0%
No Barriers 6,605 8.7%
 
Table 3G shows the specific number of documented barriers for those participants.
 
Table 3G 
Number of Barriers Per Participant
No. of  
Barriers
No. of 
Participants
% Cumulative 
%
0 6,605 8.7% 8.7%
1 18,823 24.7% 33.4%
2 28,948 38.0% 71.3%
3 17,897 23.5% 94.8%
4 3,401 4.5% 99.3%
5 572 0.8% 100.0%
Totals 76,246 100.0%
 
 
27

 One would expect the hard-to-serve to face multiple barriers to employment, yet 9 percent of the participants had no barriers, 33 percent had one or no barriers, and 71 percent had two or fewer barriers to employment documented in the SDA's MIS or the SPIR. We only evaluated the barriers identified in the SPIR since it is the SDA's responsibility to ensure that identified barriers are adequately recorded. The OIG reviewed participant files to verify the accuracy of reported barriers not to identify additional barriers.

Amount of AFDC benefits

The following table profiles the JTPA AFDC recipients by amount of AFDC benefits the participant received at time of enrollment into JTPA.

 
 
Table 3H 
AFDC BENEFIT AMOUNTS AT TIME OF PARTICIPANTS' ENROLLMENT INTO JTPA
Monthly AFDC Amount Number of 
Participants 
Percentage Cumulative  
Percentage
Less than $250/month 7,728 10.1% 10.1%
$251 - $500/month 51,755 67.9% 78.0%
$501 - $750/month 14,687 19.3% 97.3%
$751 - $1000/month 631 0.8% 98.1%
over $1000/month 171 0.2% 98.3%
Unknown 1,274 1.7% 100.0%
Total 76,246 100.0%
 
 
As shown, most AFDC recipients received less than $500 per month at the time of JTPA enrollment. 


 
28

Appendix I
 
 
 
SCOPE AND METHODOLOGY

The audit scope included Title II-A participants identified in the PY 1995 SPIR database as receiving AFDC benefits at the time of enrollment into JTPA and who terminated the JTPA program during the period July 1, 1995 through June 30, 1996. Only participants terminated from the II-A program were included as part of the universe, except participants in the II-A 8 percent and Section 204d (older worker) programs were excluded. SDAs included in the audit sample were:
 
 

Colorado Springs, CO Clarksville, TN  Dayton, OH
Philadelphia, PA Montgomery, AL Riverside, CA
New York, NY Chicago, IL San Diego, CA
Franklin, PA Cincinnati, OH Vancouver, WA
 
Our audit methodology included the following steps.
The audit survey was conducted during August and September 1997 and the audit fieldwork was conducted from October through December 1997. The audit was performed in accordance with the Government Auditing Standards promulgated by the Comptroller General that relate to performance audits. No audit work was performed to express an opinion on the financial, internal, or program controls of the various entities participating in the audit.
 
29


STATISTICAL SAMPLING METHODOLOGY

Sampling Frame: The universe for this audit covers PY 1995 (July 1, 1995 to June 30, 1996), and includes ETA's SPIR records of AFDC recipients who terminated within this program year. Data from the SPIR indicated there were 640 SDAs reporting information for PY 1995. We excluded Alaska, Hawaii, Puerto Rico, and all trust territories from the audit universe. Therefore, the universe consisted of SDAs within the 48 contiguous states plus the District of Columbia. After the exclusion, only 619 SDAs remained.

The audit universe consisted of 77,026 participants identified in the SPIR as being AFDC recipients. We selected a random sample of 1,164 participants. We found 10 duplicate records and 9 non-AFDC participants in our sample. These 19 invalid AFDC records represented 780 participant records in the SPIR. Therefore, our revised 1,145 participant sample results were projected to a revised population of 76,246 JTPA Title II-A AFDC participants. The statistical data presented in this report relate to the revised population of 76,246 participants.

Sampling Plan: We used stratified, two-stage cluster sampling to draw the sampling units from the sampling frame keeping in view the availability of the limited resources and time constraints. In order to draw a representative sample, the universe of ETA regions (1 through 10) was separated into four strata.

Strata No.         ETA Regions         No. of SDAs

1                         1, 2, and 3                 141
2                         4, 6, and 8                 220
3                         5 and 7                      168
4                         9 and 10                     90

Each of these four strata was then divided into two sub-strata according to the number of AFDC recipients reported. SDAs having more than 500 AFDC recipients formed sub-strata 1, and SDAs having less than 500 formed sub-strata 2.

Sampling was a two-stage process. In the first stage, a sample of SDAs was selected from the two sub-strata created earlier, using probability proportional to size sampling. It was decided by the management team to select a total of 12 SDAs. Two SDAs were drawn from sub-strata 1 and one from sub-strata 2. A total of three SDAs from each of the four strata were selected. The first sub-strata included 16 SDAs while the second sub-strata included 603 SDAs.

In the second stage, the sampling units (AFDC recipients) were randomly selected from each of the selected SDAs (primary units). A sample of 97 recipients from each of these SDAs was selected randomly for a total sample size of 1,164 AFDC recipients.

This sample size was based upon 95 percent confidence level and +/- 5 percent sampling precision for the estimates, taking into consideration the design effect of this sampling plan.
 

30

APPENDIX II
 
ETA'S RESPONSE TO DRAFT REPORT
 
 
 U.S. Department of Labor      Assistant Secretary for DOL Logo
                                                          Employment and Training
                                                          Washington, D.C. 20210
 
 
 
                                                                                           
 
 
 

APR 2 8 1998
 
 

MEMORANDUM FOR:         JOHN J. GETEK

Raymond J. Uhalde
FROM:                                      RAYMOND J. UHALDE
 
 

SUBJECT:                             Profiling JTPA's AFDC Participants Draft Audit
                                                  Report No. 06-98-002-03-340

This is in response to the subject report that was issued to my office on March 23, 1998.

Thank you for the opportunity to comment on the subject report. Also, we would like to express our appreciation for involving our staff in discussing the findings as you proceeded. The report itself provides some interesting highlights.

At the same time, I have the following suggestions and concerns:

1.  The methodology utilized is missing from the introduction.  It would be helpful for the reader to know and understand how samples were selected, pulled, etc. A brief up front section on methodology would be of assistance. Note: it is acknowledged that you make reference to the sampling methodology being in Appendix 1, on page 5.

2.  While we do not disagree with the conclusion reached on page two of the executive summary with regard to the participant's attachment to the labor force, it is suggested that you remove interpretative language in the last sentence of this paragraph, i.e., "While this ... participants." This would limit the executive summary to factual statements.

3. The individual folders of the participants should be reviewed to ascertain whether the finding of nine percent of the participants having no barriers is true. On the surface, it is difficult envisioning persons on AFDC without barriers. This seems like a documentation shortcoming. If you go to page 26, one learns that approximately 77 percent had multiple barriers.


2
 

4.  The AFDC recipients under JTPA and WtW are likely to be very different since the TANF recipients covered under the WtW initiative are supposed to be those most in need. Under the JTPA program, 76 percent have either diplomas or GEDs (see page 2). Beyond the characteristics, the remedies available under JTPA vs WtW are different. It may not be possible to utilize these findings as a baseline when considering the WtW recipients. In a similar manner on page five, reference is made to establishing certain benchmarks which ETA could use to evaluate future programs. To make the report more creditable, it is suggested that you acknowledge the differences between the two programs.

5.  The standards for the JTPA system are intended to serve as a proxy for decreased welfare dependency; however, the language on page four of the background statement takes issue with that
basic premise. We do not disagree that an index has not been established to serve as a measure, but employment and earnings are key to whether there is a decreased welfare dependency.

6.  In a similar manner, we are not in large disagreement with the shake down period which occurred with the program year 1994 data; nevertheless, the implication of the third paragraph on page four is non sequitur.

7.  With regard to questions posed to SDA officials on perceived problems under WtW grants, it would be helpful to either separate those out of the body of the report or eliminate them, since the report is factual for the most part. Statements such as the second paragraph on page 8 are out of context and represent opinions rather than facts.

8. It is unclear what the summary on page 11 is attempting to say. As you know, other sources of training and support that have traditionally been available will no longer be available. Many SDAs have operated the JOBS program for years; however, there is no JOBS program. Furthermore, the remedy of training
under WtW is restricted to post employment services only. The conclusion that skill deficiencies to employment are not being addressed and then relating the initial statement to the upcoming WtW program needs to be clarified.

9. On page 12, the report again moves to embrace perceptions vs facts, i.e., appears. Striking statements which are not completely factual; or forming factual statements would leave your report less subject to criticism from an outside reader. You may want to re-read the document for subjective statements. In contrast statements such as ... our audit report reveals that


3
 

participants who received JTPA-funded occupational skills..., give the reader a firm base for drawing their own conclusions.

10. On page 22, there is a subjective statement on "creaming" in the second paragraph. As noted earlier on the JOBS program, the AFDC population often passed through other programs consistent with figure IA. These individuals were on an upward bound track to continue their achievements. Many received their
high school diplomas as a precursor to JTPA. There is nothing wrong with an SDA moving them from a more elementary to a more skilled program. The academic levels of welfare recipients as a universe are 42 percent with less than high school and 58 percent with equivalency or beyond.

11.  At the same time, it is implied that the educational levels are irrelevant when you look at achievement levels, i.e., 45 percent of HSG/GED participants had math skills below the 9th grade and 71 percent below the 12th grade.

I hope these comments are helpful as you revise the report.



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