Summary

GAO reviewed the adequacy of controls exercised by the Office of Economic Opportunity (OEO), the Job Corps centers, and the Office of Economic Opportunity Operations, Army Finance Center (OEOO-FCUSA) in administering the payment of various types of allowances and the offsetting advances.

GAO noted that: (1) in 1967 Job Corps centers did not report cash advances of about $125,000 to OEOO-FCUSA because of inadequate accounting controls; (2) if the advances had been properly reported, about $115,000 could have been deducted from separation payments; (3) about 5,600 terminated corps members reenroll annually; (4) over 50 percent of a sample test of 25 enrollees had debts outstanding from prior enrollment in the Job Corps, but OEO instructions did not require collection upon readmittance and such prior indebtedness was not collected; (5) OEO's policy requiring recovery by the Job Corps centers of the unused portion of government-furnished transportation or meal tickets was not being implemented; (6) neither was OEOO-FCUSA notified so that the amount due terminated corps members could be reduced by the value of the unreturned tickets; (7) unexcused absences for which corps members were not entitled to allowances, were not properly reported to OEOO-FCUSA; and (8) because of variations between the Job Corps requirements and center procedures and practices, centers did not treat enrollees equally: (a) in the application of fines for absences without leave; and (b) for the liability for loss or damage to government property.