Department of Labor Office of Inspector General
CENTRAL TEXAS COUNCIL OF GOVERNMENTS
JTPA TITLE III DEMONSTRATION GRANT
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Report Title: Central Texas Council of Governments JTPA
Title III Demonstration Grant
Report Number: 06-98-003-03-340
Issue Date: February 6, 1998
We conducted an audit of a Job Training Partnership Act (JTPA), Title
III, Career Management Account (CMA) Demonstration Grant awarded to the
Central Texas Council of Government (CTCOG) to determine how the CMAs operated
under this grant and to determine if there was a significant difference
between the training strategies and outcomes for the CMA participants and
control group of regular JTPA Title III participants.
We found that:
Twenty percent of the grant funds were paid in stipends to all CMA participants
regardless of need or amount of time spent in the classroom. JTPA requires
that direct support payments to participants must be based on need. We
questioned $117,785 stipend payments.
Participants were not terminated from the grant after 90 days of inactivity
apparently in order to avoid negative terminations from the program.
Program outcomes for control group participants were better than the CMA
participants. Only 51 percent of CMA participants obtained jobs after training
compared to 71 percent for control group participants. Furthermore, CMA
participants' starting wage was $10.45 per hour compared to $12.65 per
hour for control group participants.
We recommended the Assistant Secretary for Employment and Training:
disallow the $117,785 in questioned stipend payments during our audit period
and any such additional payments after the audit period;
ensure that all grantees operating demonstration grants currently, and
in the future, follow guidelines regarding participants' termination from
the programs after inactivity for 90 days to allow for non-biased comparisons
of program outcomes between demonstration programs and regular JTPA programs;
encourage grantees operating Title III demonstration grants, and other
Title III programs, to limit enrollment to those participants who are truly
dislocated workers, not college students seeking a financing source for
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