This report reflects the findings of the Office of Inspector General at the time that the audit report was issued. More current information may be available as a result of the resolution of this audit by the Department of Labor program agency and the auditee. For further information concerning the resolution of this report's findings, please contact the program agency. 

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We found that states have made substantial efforts toward forming new comprehensive workforce investment systems.   Generally, our audit disclosed that states have opened One-Stop centers capable of providing user-friendly services to customers.  However, the infrastructure required for the One-Stop system is still being developed, and a strong commitment is needed by Federal, state, and local partners to meet the July 1, 2000, deadline. 

State and local boards, memoranda of understanding (MOUs), cost-allocation methods, and data-collection systems need to be in place to ensure service delivery, customer choice, program accountability, and continuous improvement, which are fundamental to WIA. 

One-Stop Centers

WIA requires that states establish, in each local area, a minimum of one physical center that provides core services and access to programs and activities carried out by One-Stop partners.  Generally, states have made substantial progress toward meeting
this requirement: 

• Most states had established, in each local area, at least one physical center providing core services. These centers were  supplemented with additional centers, satellite offices, and   kiosks. 

• Most centers were clean and provided customers with user-friendly and accessible services.  Resource areas provided accessible employment-related information.  Centers addressed transportation issues to improve customer access to centers and local job markets. Centers were designed to accommodate wheelchairs. 

• Most partners were either co-located at the One-Stop center or available through referral. 

Infrastructure

WIA requires the creation of state and local workforce investment boards (WIBs) to address policy issues, develop MOUs to define partner responsibilities at the local level, and establish cost-allocation and data-collection systems to provide ccountability.  States are in the process of building the infrastructure to sustain and continuously improve the One-Stop system.  Progress is being made; however, as of the end of our audit fieldwork, actions remained to be taken in several important areas, as illustrated in the following chart:
 

INFRASTRUCTURE ELEMENTS COMPLETED*

STATE	STATE BOARD	CERTIFIED LOCAL BOARDS	MOUs	EQUITABLE COST- ALLOCATION METHODS	FULLY DEVELOPED DATA SYSTEMS
CA	No	None	None	None	In Progress
CT	Gdfather	None	None	None	None
FL	Gdfather	Some	Some	Some	In Progress
IL	Not Compliant	None	None	None	In Progress
NY	No	None	None	None	In Progress
RI	Gdfather	None	None	None	In Progress
VT	Not Compliant	N/A	None	None	In Progress

*  Status is as of the completion of fieldwork (April 15, 1999 - December 9, 1999).  States have continued to develop systems subsequent to fieldwork.
 
• New state and local WIBs, which are essential to the reform intended by WIA, have not been fully developed. Four states had taken steps to form new state WIBs, but none were fully WIA compliant. Either states did not have an approved board or the board was missing required members, such as the Migrant and Seasonal Farmworker, Indian and Native American, and Job Corps Programs. Three states elected to grandfather in existing entities as state boards. Although grandfather boards are allowed, ETA has encouraged all states to create new boards. 

• MOUs in most instances were not executed between One-Stop partners and local workforce investment boards. MOUs cover services to be provided, funding of services and operating costs of the system, and methods of referral. Most states have designed MOU templates and are overseeing MOU development at the local level. 

• Methods of allocating system costs to One-Stop partners were generally inadequate to ensure that benefitting partners are charged their fair share of One-Stop costs. 

• Data-collection systems were at various stages of development, with no state having fully developed systems to report performance for the state, local areas, and training providers. To measure state and local erformance, states have to collect additional data and transfer existing external data into WIA management information systems. No state had a training provider information performance system, which is required to help customers make informed choices. 

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Following are the complete One-Stop reports for Vermont,
Connecticut, New York, Illinois, California, and Florida.  They are all published in the Adobe Acrobat PDF  format. 

OA Report No. 02-00-205-03-320, issued February 8, 2000

OA Report No. 02-00-206-03-390, issued February 22, 2000

OA Report No. 02-00-207-03-390, issued February 22, 2000

OA Report No. 02-00-209-03-390, issued March 14, 2000

OA Report No. 02-00-210-03-390, issued March 14, 2000

OA Report No. 02-00-211-03-390, issued March 22, 2000

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