2001 - Audit Report

U.S. Department of Labor
Office of Inspector General
Office of Audit

OUT-OF-SCHOOL YOUTH PILOT DEMONSTRATION GRANT PROGRAM FOR FOUR FINAL ROUND PILOT GRANTEES

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In April 1999 ETA awarded a final round of five JTPA Title IV Youth Opportunity Area Out-of-School Youth Pilot Demonstration Grants (YOA). The purpose of these grants was to improve employment prospects and prevent future dependency for out-of-school youth ages 16 through 24, especially dropouts, in designated low income neighborhoods. The OIG conducted a performance audit of four of the final round grantees -- Denver, San Diego, Detroit, and Baltimore -- which is a followup to our audit of first round performance (OA Report No. 06-00-002-03-340, issued March 22, 2000).

We found participation rates increased from first round participation rates and services provided to high school dropouts also increased. While case files indicated that fewer than half of the sampled youth received bona fide counseling, which is an integral component of the YOA program, participant interviews indicated more counseling and mentoring occurred than was indicated by the files.

It OIG's understanding that in-school youth could be served by the YOA program, however they were to be served with nongrant funds and were not to be reported as participating in the program. Our participant sample of YOA participants indicated 27 percent were attending school at the time of enrollment and there was indication that results for the in-school youth were being reported by the YOA program. The OIG is concerned that continuation of this circumstance could seriously distort the results of YOA participation by out-of-school youth. The OIG is also concerned that the level of documented evidence supporting various aspects of participation does not meet program reporting standards.

The OIG recommended ETA take steps to ensure separate performance reporting is maintained for out-of-school YOA participants, develop case file documentation standards, and provide guidance to YOA grantees on a number of recommendations designed to improve program performance. ETA concurred and indicated that it would work with YOA grantees to implement the recommendations.

(OA Report No. 06-01-002-03-340, issued March 27, 2001)

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