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

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

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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;