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THE DISLOCATED WORKER PROGRAM IS NOT PREDOMINANTLY SERVING LAYOFF VICTIMS
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material. Further, some of the audit reports issued prior to FY 1998 may no longer
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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.
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] The OIG conducted an audit to determine whether current policies and
practices of the Dislocated Worker (DW) program resulted in the targeted
population being served. We found that DW programs were not predominantly
serving persons who were victims of plant closings or mass layoffs and 35
percent of program participants were ineligible or documentation was
insufficient to establish their eligibility. In addition, we
believe that the allocation methodology may not distribute funds where they
are most needed.
We recommended that the Assistant Secretary for Employment and Training:
Ensure adequate guidance is provided to states so that the files of
participants who are certified for intensive services under WIA contain
adequate information to qualify them as dislocated workers and entitle them to
services deemed necessary to return them to the workforce. Determine if a more
equitable method of allocating DW funds can be devised which would result in
funds being distributed to areas where the most dislocated workers reside.
We also recommended that the Assistant Secretary require the Employment and
Training Administration (ETA) staff to complete a periodic, comprehensive
quality review and oversight of data entered into participant information systems
to ensure placements are valid and data are entered in accordance with program
guidance and are otherwise accurate and complete.
While ETA generally agreed with many of our recommendations, they did not agree
with our conclusions or much of the data on which they were based. ETA agreed
to work with state and local governments to ensure that files adequately document
participants' eligibility and also plans to increase DW program technical
assistance and monitoring activities. In addition, ETA's response indicated that
a review of the DW program's distribution formula may be completed as a part of a
mandated review of the Workforce Investment Act's (WIA) allocation formula for the
adult program. The response does not indicate a willingness to provide additional
guidance on program eligibility. However, ETA indicated that it will
increase its efforts to ensure WIA program data are accurate and believes the
use of UI wage data will help eliminate some of the errors identified in our
review.
(Report No. 04-00-002-03-340; issued June 29, 2000)
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