Devereaux, Inc.

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

OIG RECOMMENDS THAT ETATERMINATE THE DEVEREAUX CORPORATION'S WTW GRANT

Information obtained from the Internet may not be in the same format as a hard copy obtained from the Office. Depending on the requester, the quantity of information provided may also vary. In order to appeal any deleted information received via the Internet, you must make a formal written request for the same material. Further, some of the audit reports issued prior to FY 1998 may no longer be available. They may have been destroyed in accordance with our records retnetion schedule. However, any request for audit reports or other audit materials should be sent to the OIG, Disclosure Officer, Room S1303, 200 Constitution Avenue, N.W., Washington, D. C. 20210.

Unless otherwise stated, the audit reports provided on this web page reflect the findings of the OIG at the time that the audit report was issued. The auditee may have more current information available as a result of audit resolution activities.

The OIG is using Adobe Acrobat 4.0 to prepare its audit reports for the internet. If you experience problems accessing the PDF files, you may want to download the latest version of the Adobe Acrobat Reader by clicking on the link provided.

[ Link to Acrobat 4.0 Reader ]

OIG performed a postaward survey of the Devereaux Corporation's (Devereaux) WtW competitive grant program. The purpose of the survey was to examine Devereaux's financial management and program systems and make an assessment of the Devereaux Corporation's capability to administer the grant in accordance with the applicable regulations. ETA awarded Devereaux a $3,044,457 Welfare-to-Work (WtW) competitive grant on September 30, 1999. Devereaux is located in Lanham, Maryland.

The survey concluded that Devereaux does not have either the experience or past performance record that is presented in the grant application and which formed the basis for the competitive award. Therefore, the awarding of this grant may have deprived a more qualified applicant from receiving a WtW competitive grant. The survey also found a number of instances in which Devereaux is not complying with the WtW regulations. Specifically:

Devereaux's grant fund drawdowns exceeded actual disbursements by over $247,000.
The approved grant budget included excessive and questionable costs.
Staff salaries appear unreasonable and Devereaux incurred questionable transportation and travel costs.

It is our opinion that these problems, taken as a whole, clearly demonstrate that Devereaux is not the organization that it presented in the grant application, and it does not have the capability to comply with the WtW regulations. We recommended that the Assistant Secretary for Employment and Training direct the ETA Grant Officer to take the steps necessary to terminate Devereaux's WtW grant at the earliest possible time for failure to respond fairly and accurately to ETA's grant solicitation, upon which this competitive grant was awarded, and for failure to demonstrate that Devereaux can administer the WtW grant according to the WtW regulations. We also recommended that the Assistant Secretary for Employment and Training:

Recover the unexpended grant funds, including any interest earned on the excess cash balance.
Disallow and recover the incurred questionable costs.

The Assistant Secretary for Employment and Training shared OIG's concerns and expressed his intent to review all relevant information and take appropriate action including possible termination. In the meantime, ETA removed Devereaux's access to the advance Payment Management System and put it on a cost reimbursement basis.
(Report No. 03-00-006-03-386, issued May 22, 2000)

[ Get Complete Report PDF ]

REPORTS BY FISCAL YEAR

[ Prior to 1998 ]

[ 1998 Reports ]

[ 1999 Reports ]

[ 2000 Reports ]

GO TO --

[ Annual Audit Plans ]

[ Audit Process ]

[ Audit Reports ]

[ FOIA ]

[ Semiannual Reports ]

[ Single Audit Information ]