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					                         Job Corps and the OIG
                             Office of Audit


                                                                     NJCA Presentation
                                                                      February 8, 2012



U.S. Department of Labor, Office of Inspector General – Office of Audit                  1
     Job Corps and the OIG Office of Audit


            WIA requires program-wide coverage
             (audit, evaluation, or survey) every 3
             years:

             FY 2011-2013: Audit focus on Contracting
              and Program Performance




U.S. Department of Labor, Office of Inspector General – Office of Audit   2
    FY 2011-2012 Audits

     Five Completed and Six Ongoing Audits
          Audit Area                                                      Auditee
          1) Outreach and Admissions                                      Job Corps / O&A Service Providers
          2) Performance Metrics                                          Job Corps
          3) Subcontracting                                               Los Angeles JCC
          4) Subcontracting                                               Red Rock JCC
          5) Subcontracting                                               Turner JCC
          6) Subcontracting (Ongoing)                                     Oneonta JCC
          7) Subcontracting (Ongoing)                                     Paul Simon JCC
          8) Subcontracting (Ongoing                                      Clearfield JCC
          9) Deferred Maintenance (Ongoing)                               Job Corps
          10) Center Achievement (Ongoing)                                Job Corps
          11) National Contracts (Ongoing)                                Job Corps



U.S. Department of Labor, Office of Inspector General – Office of Audit                                       3
FY 2010 Audits – Outreach and Admissions

  Outreach and Admissions Audit:
    Secretary Solis requested this audit to ensure the appropriate use
    of Federal taxpayer money and the fair enrollment opportunity for
    eligible students into Job Corps.

             Did Job Corps ensure OA service providers enroll only
              eligible students?

                             Are the student application and income self-attestation
                              processes adequate to ensure eligibility?

                             Is oversight provided by local, corporate, and Job
                              Corps adequate to ensure eligibility?




U.S. Department of Labor, Office of Inspector General – Office of Audit                 4
FY 2010 Audits – Outreach and Admissions

  Outreach and Admissions Audit Results:
    Income Self-Certification Was Not Effective
            We estimated that 427 (10 percent) of active students enrolled
             in the program during March 2011 were ineligible

                      o Eight students documented their income at amounts
                        greater than what they self-certified and at levels exceeding
                        their respective low-income thresholds

                      o Four students declined to provide documentation of income

            $13.8 million would be spent over time to train these ineligible
             students

            DOL funds spent on ineligible students over a 1-year period
             could total $164.6 million

U.S. Department of Labor, Office of Inspector General – Office of Audit                 5
FY 2010 Audits – Outreach and Admissions

  Outreach and Admissions Audit Results:
    Service Providers Did Not Consistently Comply with Job
    Corps Policy
            We estimated that service providers did not comply with Job
             Corps enrollment requirements for as many as 1,527 (2.7
             percent) of the students enrolled during calendar year 2010

                      o Eligibility criteria included age, legal residency, ability to
                        benefit from the Job Corps program, and low-income status

            As much as $45.4 million in DOL funds could be spent over
             time to train these students




U.S. Department of Labor, Office of Inspector General – Office of Audit                  6
FY 2010 Audits – Outreach and Admissions

  Outreach and Admissions Audit Results:
    Significant and Systemic Control Weaknesses Allowed
    Ineligible Enrollments
                Some service providers disregarded or were not aware of the
                 appropriate income eligibility thresholds

                Job Corps had not provided adequate procedures, training, and
                 oversight to ensure compliance

                Job Corps did not conduct 100 percent income verification

                Job Corps policy requiring admissions counselors to obtain
                 income documentation based on social security number
                 sequences was not an effective control



U.S. Department of Labor, Office of Inspector General – Office of Audit          7
FY 2010 Audits – Outreach and Admissions

  Outreach and Admissions Audit Results:
    Questioned Costs for Ineligible Students
                Through sample testing, we determined that $2.27 million of
                 DOL funds were spent to train 153 ineligible students

    Job Corps is Strengthening its Student Eligibility
    Determination Process
                Job Corps has begun making changes to its student eligibility
                 determination process, including:

                     o Modifying its automated system to no longer allow input of
                       income amounts exceeding the established thresholds

                     o Requiring all potential students to provide income
                       documentation

U.S. Department of Labor, Office of Inspector General – Office of Audit             8
FY 2010 Audits – Outreach and Admissions

  Outreach and Admissions Audit:
   Recommendations
     Require Job Corps to determine the eligibility of
       all active students with recorded incomes over
       the established income thresholds

               Recover from service providers the $2.27 million
                in program funds spent on ineligible students
                identified during our testing

               Develop policies, procedures, training and
                oversight to ensure student eligibility

U.S. Department of Labor, Office of Inspector General – Office of Audit   9
 FY 2010 Audits – Performance Metrics

    Performance Metrics Audit
     Our Objective

            – To what extent does Job Corps have metrics in place
              to assess the program’s performance?

     Our Scope

            – Performance metrics and outcomes for PY 2009,
              October 2010, and policies, procedures, and
              processes through March 7, 2011


U.S. Department of Labor, Office of Inspector General – Office of Audit   10
 FY 2010 Audits – Performance Metrics

    Performance Metrics Audit
     Results

             - 22 of 58 performance metrics had deficiencies

             - 9 of 58 metrics reported inaccurate results

             - 4 of 58 metrics did not report a result and/or
               have an established target

             - 19 metrics required by WIA were not publicly
               published as required


U.S. Department of Labor, Office of Inspector General – Office of Audit   11
 FY 2010 Audits – Performance Metrics

    Performance Metrics Audit
     Results continued

            – 42.3 percent (7,517 of 17,787) of JTM placements
              did not comply with WIA

            – 18.1 percent of JTM placements did not relate or
              poorly related to training (e.g., nurse assistant placed
              as cashier)

            – 21.2 percent of JTM placements were in post-
              secondary education or training rather than jobs


U.S. Department of Labor, Office of Inspector General – Office of Audit   12
 FY 2011 Audits – Performance Metrics

    Performance Metrics Audit
    Results continued

            – Job Corps reported cost per participant as $26,551:
              OIG calculated cost per training slot utilized as
              $37,880

            – Cost efficiency did not reflect outcomes (e.g., job
              placement, training completion)

            – Results based on appropriated funds and exclude
              administration expenses


U.S. Department of Labor, Office of Inspector General – Office of Audit   13
 FY 2011 Audits – Performance Metrics

    Performance Metrics Audit
    Recommendations

           1. Review and improve performance metrics to provide
              decision-makers with useful and reliable information

           2. Improve oversight of service providers to increase
              the number of students who find employment that
              relate to and utilize the vocational training received

           3. Ensure scope of work contracted for and conducted
              by consultants is managed appropriately


U.S. Department of Labor, Office of Inspector General – Office of Audit   14
 FY 2011 Audits – Centers’ Sub-contracting

    Job Corps Centers’ Sub-contracting

      Audit Objective

       Did procurement by the Center Operator
        result in fair and open competition and
        best value to the government?




U.S. Department of Labor, Office of Inspector General – Office of Audit   15
 FY 2011 Audits – Centers’ Sub-contracting

    Job Corps Centers’ Sub-contracting
     We completed sub-contracting audits at six Job
      Corps centers and issued three reports

     Three reports are being revised based on ETA
      input and the center operator responses to the
      draft reports

     We also plan on issuing an overall roll-up report




U.S. Department of Labor, Office of Inspector General – Office of Audit   16
 FY 2011 Audits – Centers’ Sub-contracting

    Job Corps Centers’ Sub-contracting
    Results
     Sole source justifications were not adequate to
      support fair and open competition

     Some centers were not in compliance with their
      own corporate procurement policies and
      procedures when executing sub-contracting
      actions

     Documentation to support invoice payments was
      at times inadequate

U.S. Department of Labor, Office of Inspector General – Office of Audit   17
 FY 2012 Audits – Deferred Maintenance

    Deferred Maintenance Audit
    Background

     Job Corps manages 125 centers with over 3,800
      buildings, including many buildings which are old
      and/or beyond economic repair

     Average age of centers is 42 years old

     Estimated deferred maintenance costs for FY 11
      totaled $96.1 million



U.S. Department of Labor, Office of Inspector General – Office of Audit   18
 FY 2012 Audits – Deferred Maintenance

    Deferred Maintenance Audit
    Objectives

            – To what extent did Job Corps’ management of
              deferred maintenance ensure (1) its centers
              were safe and healthy; and (2) allocated funds
              were spent effectively and efficiently?




U.S. Department of Labor, Office of Inspector General – Office of Audit   19
   FY 2012 Audits – Performance Management

  Job Corps Center Achievement: Background

  The performance management system is intended to assist Job Corps:

      1. Meet accountability requirements for establishing performance
         measures and reporting student outcomes for the Job Corps system
         per the Workforce Investment Act legislation, Common Performance
         Measures for federal youth programs, and U.S. Department of Labor
         priorities

      2. Assess centers’ and agencies’ accomplishments in implementing
         program priorities and serving students effectively

      3. Provide feedback on performance, while encouraging continuous
         program improvement


U.S. Department of Labor, Office of Inspector General – Office of Audit   20
   FY 2012 Audits – Performance Management

  Job Corps Center Achievement: Audit Objective
  To what extent has Job Corps ensured centers managed their academic
  and career technical training programs to meet performance goals and
  maximize student achievements?

     What impact did Job Corps’ oversight and monitoring have on
      centers’ achievements and development/implementation of
      improvements?

     What efforts and actions did centers take to improve performance?




U.S. Department of Labor, Office of Inspector General – Office of Audit   21
 FY 2012 Audits – National Contracts

    National Contracts Audit – Background
   Job Corps National Office oversees and
    administers several national support contracts
    including: national health and wellness
    consultants, the Job Corps National Call Center,
    Job Corps nationwide outreach activities, and
    nation-wide curriculum development and training

   The Job Corps Program was administratively
    moved twice within the last seven years from ETA,
    to the Office of the Secretary, and back to ETA



U.S. Department of Labor, Office of Inspector General – Office of Audit   22
 FY 2012 Audits – National Contracts


    National Contracts Audit – Audit Objective


       Are Job Corps national contracts awarded and
        costs claimed in accordance with the FAR and Job
        Corps requirements?




U.S. Department of Labor, Office of Inspector General – Office of Audit   23
        Planned Audits FY 2012-2013


             • Construction Contracts

             • Indirect Costs

             • Career Transition Services




U.S. Department of Labor, Office of Inspector General – Office of Audit   24
    Job Corps and the OIG Office of Audit




                                                    Questions?




U.S. Department of Labor, Office of Inspector General – Office of Audit   25

				
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