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:   09-98-001-30-379

Issue Date:  March 31, 1998

We concluded that Job Corps could not rely on financial or program information reported by FSJCC. While performance results regarding General Education Development (GED) and High School Diploma (HSD) attainments are accurate, performance results regarding overall vocational and academic achievements are not supported. Vocational training records did not support that FSJCC had properly trained students before certifying them as vocational training completers and allowing them to enter the employment force. Academic achievement claims were based on data that had been improperly manipulated and not corrected by FSJCC management. In our opinion, these problems significantly reduce the reliance Job Corps can place on FSJCC performance statistics in evaluating FSJCC program accomplishments.

We also concluded that financial systems used to report costs for the FSJCC need significant improvements. Until improvements are made, we do not believe that Job Corps can rely on the financial systems to produce accurate and timely financial information regarding FSJCC.

The following summarizes the audit findings:

A.      Vocational Completions Claimed Not Supported

FSJCC's training records do not support two-thirds of the number of students claimed as Vocational Completers for PY 1995 because FSJCC management did not properly monitor the training achievement records prepared by vocational instructors.  Neither Job Corps nor FSJCC management have adequate assurances that students graduating from FSJCC have actually developed the necessary vocational skills for successful employment in their chosen trades.

The statistical impact of significant improprieties in student academic achievement testing disclosed by a U.S. Bureau of Reclamation (USBR) monitoring review of FSJCC during PY 1995 has never been corrected.  While FSJCC management took actions to prevent additional improprieties, they did not reassess students affected or correct FSJCC statistics.  Job Corps cannot rely upon FSJCC math and reading achievement statistics for the audit period.

USBR needs to make significant changes to improve internal controls over financial information. We identified weaknesses regarding a) reconciling cost reports and the general ledger, b) use of control accounts for equipment and stores, and c) segregation of duties at FSJCC. As a result, the financial information from FSJCC is not reliable and FSJCC PY 1995 cost has been over reported by $460,429.

USBR reported costs for the USBR Boise Regional Office that are not supported. USBR could not provide adequate supporting documentation for the $186,542 billed for various services.

The funding purpose of "Program Direction" needs to be defined. The Interagency Agreement between the Employment and Training Administration (ETA) and USBR offers no clear explanation of what the funding does and does not cover. Both the annual budgets approved by Job Corps and the Policy and Requirements Handbook (PRH) are silent regarding the nature of the expenses for which "Program Direction" funding serves as reimbursement.

Records (Training Achievement Records [TARs], Tests of Adult Basic Education [TABEs], and copies of HSDs and GED certifications) that the PRH requires to be kept in the individual student personnel folders are often missing.  FSJCC cannot support certain reported performance data.  In addition, if a terminated student transfers or is later readmitted to a different Job Corps center, FSJCC may be unable to provide the new center complete information critical to assessing that student's background and needs.

In response to the draft report, USBR disagreed with the report's conclusion that the current financial systems do not produce accurate and timely financial information. Also of major concern was the implication that the financial and program deficiencies identified by the report, based on the Center's conditions in Program Year 1995 (July 1995 through June 1996), still exist. The Bureau generally agreed with the program performance findings.

Job Corps agreed with the finding and recommendations regarding program performance but did not comment on the financial finding or recommendations, pending a review of the Bureau of Reclamations response.

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