2000 - Audit Report

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

FOLLOW-UP AUDIT FOUND GRANTEE SERVICES STILL NEED TO IMPROVE AND ETA SHOULD CONTINUE PROGRAM EVALUATIONS

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On March 22, 2000, the OIG issued "Audit Findings from First 18 Months of the Three Kulick Youth Opportunity Pilot Sites Suggest Additional Innovation Is Needed for Youth Training Undertaken with JTPA Demonstration Grant Funds." (OA Report No. 06-00-002-03-340) This report represented a snapshot of these Youth Opportunity pilot sites in the early stages of the program. The purpose in having these various pilot sites was to learn lessons in order to improve the program progressively. ETA has indicated that lessons learned from these three pilot sites have been used to tighten the structure of the subsequent pilots and the larger operational grants.

We performed a follow-up audit to provide DOL management with additional independent information regarding whether youths’ earnings increased or decreased in the year after our initial audit. While the earnings outcomes appear to be improving, grantees’ services still need to be improved to lead these youths to self-sufficiency.

As a measure of program accomplishment, we evaluated:

continuity of employment as measured by (1) sustained employment from quarter to quarter, (2) the number of quarters in which participants had earnings in the four-quarter evaluation period, and (3) the number of different employers participants had in the four-quarter evaluation period; and

participants earnings during the last quarter of our evaluation period.

We found that approximately 70 percent of the initial participants in our audit sample (105 participants) had earnings in the follow-up period. Overall, annual earnings of the participants sampled increased from $4,217 in our initial audit to $5,482 in the follow-up. For the participant universe, average annual earnings were $5,982. Tracking the earnings of the participants sampled disclosed that approximately one-third of them showed no significant increase or decrease in their earnings, one-third showed a decrease; and one-third showed an increase.

In our opinion, ETA should continue to evaluate the performance of these grantees and the WIA-funded Youth Opportunity operational grantees. This is necessary to help increase the number of youths who obtain and maintain employment and increase their annual earnings.
(Report No. 06-00-003-03-340, issued September 20, 2000)

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