Statement of George Egan on May 20, 1980 Concerning Department of Labor Audits of Comprehensive Employment and Training Act (CETA) Grantees (From CETA's Vulnerability to Fraud and Abuse - Hearings, P 50-67, 1980 - See NCJ-79041)

• NCJ Number: 79042
• Author(s): G Egan
• Date Published: 1980
• Length: 17 pages
• Corporate Author: US Government Accountability Office
• Sale Source: National Institute of Justice/; NCJRS Photocopy Services
• Publication Type: Legislative/Regulatory Material
• Language: English
• Country: United States of America
• Note: Available on microfiche as NCJ-79041.

Annotation

This prepared statement submitted during congressional hearings regarding fraud and abuse in Comprehensive Employment and Training Act (CETA) programs concerns Department of Laor (DOL) audits of CETA grantees.

Abstract

It discusses how DOL carries out its audit responsibilities, based on an evaluation of the quality of audits that had been performed at 13 prime sponsors. Findings indicate that billions of dollars of CETA funds have not been audited and that the audits tested were not always in conformance with Comptroller General audit standards. The statement also questions whether DOL and its grantees are vulnerable to misuse and abuse of Government funds, based on an analysis of DOL's system of internal controls. These findings lead to the conclusion that the CETA program is more vulnerable to fraud, abuse, and error than it should be because some essential internal controls are lacking at all levels of the CETA organization. For example, prime sponsors were not reviewing subgrantee requests for cash or subgrantee cash balances and as a result excessive amounts of CETA money were being maintained by subgrantees. Examples of what has happened in the CETA program as a result of weak internal controls are appended. (Author summary modified)