United Sioux Tribes of South Dakota Development Corporation

U.S. Department of Labor Office of Inspector General

Audit Report

UNITED SIOUX TRIBES OF SOUTH DAKOTA DEVELOPMENT CORPORATION

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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 Title: United Sioux Tribes of South Dakota Development Corporation

Report Number: 18-98-006-03-355

Issue Date: March 13, 1998

ETA awarded the United Sioux Tribes of South Dakota Development Corporation (UST) $1.3 million in JTPA grant funds to provide training and other services to Native Americans residing in the State of South Dakota, and Knox County, Nebraska, who face serious barriers to employment. The objective of the audit was to determine UST's effectiveness in providing these services.

The OIG questioned $303,615 in claimed costs and found that UST had not been very effective in providing required services. In fact, OIG found that in Program Year (PY) 1995, only 29.5 percent of the budget was used for training and supportive services while in PY 96 that percentage dropped to 19.75. UST had budgeted for 52 percent of the grant funds to be spent on these categories in PY 95 and 36 percent in PY 96. Therefore, a substantial portion of the costs programmed for participants was instead spent on operating costs.

In addition, OIG found that UST:

(1) reported Administration costs that exceeded the 20 percent ceiling limitation;
(2) charged JTPA with costs that should have been charged to the organization as a whole and to its other Federal grant;
(3) charged the training assistance cost category with administrative salary costs that should have been charged to administration, causing the administration costs to further exceed the 20 percent limit;
(4) failed to obtain documentation for payments made directly to participants for supportive service costs;
(5) paid the Executive Director for leave that exceeded its allowable carryover amount; and,
(6) paid an individual for services, although the OIG could not determine what services, if any, were performed.

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Attachments

cc: ETA

Office of Grants and

Contract Management

Ed Tomchick

Director

Jaime Salgado

Audit Liaison Officer

Division of Acquisition

and Assistance

John Steenbergen

Contracting Officer

Division of Acquisition

and Assistance

Diane Edwards

Acting Director

Division of Resolution

and Appeals

Office of Job Training Programs

Peter Rell

Acting Administrator

Office of Job Corps

Mary Silva

National Director

Robert Sabochik

Deputy Director

Charles R. Hayman, M.D.

National Medical Director

Timothy Sullivan

Director, Division of Program Planning

and Review

Office of the Controller

Harry Roberson

Contracting Officer, Closeout

Division of Accounting