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The OIG has issued two reports on the results of postaward surveys of 47 competitive WtW grantees (Additional Policy and Technical Assistance Will Help Achieve WtW Legislative Intent and Improve Program Administration, Report No. 05-00-008-03-386 issued March 24, 1999, and Second Round Welfare-to-Work Survey Identified Areas Needing Additional Policy and Technical Assistance to Achieve WtW Legislative Intent and Improve Program Administration, Report No. 05-99-020-03-386 issued Sept. 20, 1999). While we determined that the competitive grantees overall possessed adequate delivery capability, we found financial and program vulnerabilities. Financial vulnerabilities included weaknesses in internal controls over cost limitations, management information systems, cash management, and financial and programmatic reporting. Program vulnerabilities included inadequate agreements with TANF agencies and subrecipients, insufficient eligibility procedures, lack of written policies and procedures, and noncompliance with minimum wage requirements and the WtW's "work first" focus.

We followed up the surveys with financial and compliance audits of three WtW grantees (DePaul University, Indianapolis Private Industry Council, and Chicago Housing Authority) to determine participant eligibility and the allowability of cost claimed. Each report contained questioned costs because of ineligible participants and inadequate support for grant expenditures. The total is $247,110. Other common findings include:

• Participants misclassified in the database which inaccurately skews sub-categories of expenditures and participants (but not the totals);
• Illinois grantees need to obtain sufficient TANF (and AFCD) evidence from the Illinois Department of Human Services for its WtW participants;
• Two grantees lacked a system to classify expenditures as required by the WtW legislation; the third grantee did not follow its cost allocation plan to allocate expenditures to the required classifications.
• Two grantees issued Financial Status Reports to ETA which were not supported by accounting or participant data systems.

The common findings are summarized in the following table:

Grantee officials generally concurred with our findings and identified actions they have taken or plan to implement to address our recommendations. (Audit Report Nos. 05-01-003-03-386, issued July 27, 2001; 05-01-004-03-386, issued Sept. 24, 2001; and 05-01-005-03-386, issued Sept. 25, 2001)

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