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AUDIT OF JOB CORPS  PLACEMENTS MADE BY DYNAMIC EDUCATIONAL SYSTEMS INC.

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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. 

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In response to a request from Job Corps, the OIG performed a limited review of the accuracy Dynamic Educational Systems Inc's (DESI) placement information. The request followed a report from DESI that one of its employees had submitted invalid placements information. Our audit revealed that a lack of adequate controls resulted in the submission of 77 invalid placements during Program Years 1997 and 1998. We questioned $13,625 in costs associated with invalid placements and unearned student bonuses.

DESI is one of several entities contracting with Job Corps to provide training, educational and placement services for Job Corps participants. Under the contract audited, DESI furnished outreach, admissions and placement (OAP) services to Job Corps participants returning to the State of Ohio. Our audit assessed the extent of invalid placements submitted by the alleged employee, identified other potential invalid placements, tested the validity of the remaining placements reported by DESI, and evaluated the control procedures over placements. 

We recommended that the Assistant Secretary for Employment and Training direct the Office of Job Corps to:

  • implement control procedures that place more responsibility on the contractors' corporate office when resolving notices of questionable student placements;
     
  • delete the invalid placements so that DESI's accomplishments only reflect valid placements; and
  • collect $13,625 from DESI for the costs associated with invalid placements and unearned student bonuses.
Job Corps concurred with our findings and recommendations and has taken steps to address them.
(Report No. 05-00-006-03-370, issued August 10, 2000)
 
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