NCJ Number
80464
Date Published
1981
Length
71 pages
Annotation
This report summarizes the results of the General Accounting Office (GAO) review of the vulnerability of the Department of Labor (DOL) and selected Comprehensive Employment and Training Act (CETA) grantees to fraud, waste, and abuse.
Abstract
It describes weaknesses in fiscal and managerial controls over program and administrative activities at DOL headquarters, for regional offices, and nine CETA grantees and identifies how these weaknesses have led or can lead to abuses of Federal funds. At each location examined, GAO reviewed the agency's policies and procedures, administered a 340-page internal control checklist to agency officials, and tested various transactions to determine whether internal controls were working. CETA audit performance was evaluated in terms of work undertaken at the grantee level, actions taken on audit findings, and audit staffing needs versus current staffing levels. In fiscal 1980, DOL spent about $8 billion in Federal funds for CETA programs. At the time of GAO's review, DOL headquarters, regional offices, and grantees lacked sufficient internal controls to adequately safeguard CETA funds. Those involved should require that cash collections be safeguarded, recorded, and promptly deposited upon receipt. Vendor invoices should be reviewed to determine whether they are still outstanding, and disbursements to vendors who have previously received duplicate payments should also be checked. Additional recommendations are included. The checklist of internal control weaknesses, prior GAO reports dealing with CETA programs, a discussion of administering the questionnaire, and DOL comments are appended. A glossary and an organizational chart are included.