Columbus Urban League
Welfare-to-Work Competitive Grant For the Period
January 4, 1999 through June 30, 2001
05-02-003-03-386
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The Office of Inspector General (OIG) conducted a performance audit of the $3,149,984 Welfare-to-Work (WtW) Competitive Grant
awarded to the Columbus Urban League (CUL). Our audit objective was to determine whether CUL was in compliance with the WtW
grant agreement, applicable laws and regulations.
The CUL reported expenditures of $1,854,785 in support of 313 WtW participants for the period January 4, 1999 through June 30, 2001.
We tested a judgmental sample of staff salaries and fringe benefits, as well as administrative, program, and service provider costs
totaling $285,744. We also tested 18 participants' program eligibility and reviewed the grantee's compliance with the grant requirements
and principal criteria. However, our selective testing was not designed to express an opinion on CUL's Quarterly Financial Status
Report (QFSR).
We found:
- Noncompliance with OMB Circular A-122 and grant agreement resulted in questioned costs totaling $139,516 because:
- salaries and fringe benefits, totaling $91,516, that were directly allocated between WtW and other programs are based on a predetermined rate; and
- expenditures of $48,000 for technology items were not pre-approved.
- A participant MIS was not in place resulting in:
- enrollment of participants not accurately tracked; and
- 70 percent and 30 percent expenditures not allocated properly.
We recommend that the Assistant Secretary for Employment and Training:
- recover questioned costs totaling $139,516,
- ensure the accuracy of the MIS tracking of enrolled participants, and
- ensure that accurate participant ratios are used in allocating 70 percent and 30 percent expenditures.
CUL concurred with our findings and proceeded to take the following corrective actions:
- requested approval for its costs allocation plan for salaries and
fringe benefits, and purchases of technology items exceeding $5,000,
- removed the unallowable charges from the WtW Program,
- implemented a tracking and allocation system for the 70 percent and 30 percent expenditures, and
- revised its written procurement procedures to include the minimum requirements set forth by the regulation as stated in our draft report.
CUL has not received approval for its allocation plan and equipment purchases.
However, we were provided sufficient documentation in the grantee's response to our
draft report to reduce the original questioned costs to $139,516. CUL's response to the draft report is included as Appendix A.
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