U.S. Department
of Labor Office of Inspector General
Audit Report
FORT SIMCOE JOB CORPS CENTER
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This report reflects the findings of the Office of Inspector General
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Report Title: Ft. Simcoe Job Corps
Center
Report Number: 09-98-001-30-379
Issue Date: March 31, 1998
We performed an audit of the Fort Simcoe Job
Corps Center (FSJCC). This audit covered (1) program performance statistics
for Program Year (PY) 1995 (July 1, 1995 through June 30, 1996) and (2)
FSJCC expenditures as reported on the ETA Form 2110F, the Job Corps
Conservation Center Financial Report for the same period.
We concluded that Job Corps could not rely on
financial or program information reported by FSJCC. While performance results
regarding General Education Development (GED) and High School Diploma (HSD)
attainments are accurate, performance results regarding overall vocational
and academic achievements are not supported. Vocational training records
did not support that FSJCC had properly trained students before certifying
them as vocational training completers and allowing them to enter the employment
force. Academic achievement claims were based on data that had been improperly
manipulated and not corrected by FSJCC management. In our opinion, these
problems significantly reduce the reliance Job Corps can place on FSJCC
performance statistics in evaluating FSJCC program accomplishments.
We also concluded that financial systems used
to report costs for the FSJCC need significant improvements. Until improvements
are made, we do not believe that Job Corps can rely on the financial systems
to produce accurate and timely financial information regarding FSJCC.
The following summarizes the audit findings:
A. Vocational
Completions Claimed Not Supported
FSJCC's training records do not support two-thirds
of the number of students claimed as Vocational Completers for PY 1995
because FSJCC management did not properly monitor the training achievement
records prepared by vocational instructors. Neither Job Corps nor
FSJCC management have adequate assurances that students graduating from
FSJCC have actually developed the necessary vocational skills for successful
employment in their chosen trades.
B. Academic Achievements
Overstated
The statistical impact of significant improprieties
in student academic achievement testing disclosed by a U.S. Bureau of Reclamation
(USBR) monitoring review of FSJCC during PY 1995 has never been corrected.
While FSJCC management took actions to prevent additional improprieties,
they did not reassess students affected or correct FSJCC statistics.
Job Corps cannot rely upon FSJCC math and reading achievement statistics
for the audit period.
C. Internal Controls
Need to Be Improved
USBR needs to make significant changes to improve
internal controls over financial information. We identified weaknesses
regarding a) reconciling cost reports and the general ledger, b) use of
control accounts for equipment and stores, and c) segregation of duties
at FSJCC. As a result, the financial information from FSJCC is not reliable
and FSJCC PY 1995 cost has been over reported by $460,429.
D. Expenses Claimed
by USBR's Boise Regional Office Are Unsupported
USBR reported costs for the USBR Boise Regional
Office that are not supported. USBR could not provide adequate supporting
documentation for the $186,542 billed for various services.
E. "Program
Direction Costs" Need to Be Defined
The funding purpose of "Program Direction" needs
to be defined. The Interagency Agreement between the Employment and Training
Administration (ETA) and USBR offers no clear explanation of what the funding
does and does not cover. Both the annual budgets approved by Job Corps
and the Policy and Requirements Handbook (PRH) are silent regarding the
nature of the expenses for which "Program Direction" funding serves as
reimbursement.
F. Required Records
Missing From Student Files
Records (Training Achievement Records [TARs],
Tests of Adult Basic Education [TABEs], and copies of HSDs and GED certifications)
that the PRH requires to be kept in the individual student personnel folders
are often missing. FSJCC cannot support certain reported performance
data. In addition, if a terminated student transfers or is later
readmitted to a different Job Corps center, FSJCC may be unable to provide
the new center complete information critical to assessing that student's
background and needs.
We made recommendations to the Employment and Training
Administration to correct these deficiencies.
In response to the draft report, USBR disagreed
with the report's conclusion that the current financial systems do not
produce accurate and timely financial information. Also of major concern
was the implication that the financial and program deficiencies identified
by the report, based on the Center's conditions in Program Year 1995 (July
1995 through June 1996), still exist. The Bureau generally agreed with
the program performance findings.
Job Corps agreed with the finding and recommendations
regarding program performance but did not comment on the financial finding
or recommendations, pending a review of the Bureau of Reclamations response.
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