Washington Alliance

U.S. Department of Labor
Office of Inspector General
Office of Audit

THE WASHINGTON ALLIANCE IS NOT CAPABLE OF ADMINISTERING ITS WELFARE-TO-WORK GRANT

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We performed a postaward survey to assess the Washington Alliance's ability to administer its $5 million WtW grant in accordance with applicable regulations. We concluded that the Alliance has neither the administrative nor the program capacity to operate this WtW grant. In the grant application, the Alliance was described as a collaborative effort of nine organizations with two general partners and seven subcontractors. However, the Alliance's current organizational structure and program operations are significantly different from those represented in the grant agreement. We found that only four of the nine organizations identified in the grant agreement were involved in the WtW grant, and one additional organization's activity was reduced to representation by a partner with no role or authority. We believe that this dramatic departure from the proposed structure essentially invalidates the competitive award.

We found other problems with the Alliance, including vendor agreements that were awarded without free and open competition; vendor costs that appear unreasonable and were not evaluated using a price or cost analysis; staff salaries that appear unreasonable and were not based on an established compensation plan; and enrollment levels that are lower than those targeted in its performance goals. The identified problems clearly demonstrate that the Alliance is not operating its WtW program according to either the approved grant agreement or the pplicable WtW regulations. To safeguard the Government's interest, we recommended that ETA immediately start action to terminate the grant.
(OA ReportNo.03-00-004-03-386, issued March 27, 2000)

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