Audit Report
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.
Report Number: 18-98-006-03-355
Issue Date: March 13, 1998
ETA awarded the United Sioux Tribes of South Dakota Development Corporation (UST) $1.3 million in JTPA grant funds to provide training and other services to Native Americans residing in the State of South Dakota, and Knox County, Nebraska, who face serious barriers to employment. The objective of the audit was to determine UST's effectiveness in providing these services.
The OIG questioned $303,615 in claimed costs and found that UST had not been very effective in providing required services. In fact, OIG found that in Program Year (PY) 1995, only 29.5 percent of the budget was used for training and supportive services while in PY 96 that percentage dropped to 19.75. UST had budgeted for 52 percent of the grant funds to be spent on these categories in PY 95 and 36 percent in PY 96. Therefore, a substantial portion of the costs programmed for participants was instead spent on operating costs.
In addition, OIG found that UST:
Attachments
cc: ETA
Office of Grants and
Contract Management
Ed Tomchick
Director
Jaime Salgado
Audit Liaison Officer
Division of Acquisition
and Assistance
John Steenbergen
Contracting Officer
Division of Acquisition
and Assistance
Diane Edwards
Acting Director
Division of Resolution
and Appeals
Office of Job Training Programs
Peter Rell
Acting Administrator
Office of Job Corps
Mary Silva
National Director
Robert Sabochik
Deputy Director
Charles R. Hayman, M.D.
National Medical Director
Timothy Sullivan
Director, Division of Program Planning
and Review
Office of the Controller
Harry Roberson
Contracting Officer, Closeout
Division of Accounting