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HRD-77-24 1 (1977-02-18)

handle is hein.gao/gaobaabzh0001 and id is 1 raw text is: DOCUMENT RESUME 00655 - [A07513471 Employment Programs in Buffalo and Erie County under the Comprehensive Employment and Training Act Can Be Improved. B-163922; HRD-77-24. February 18, 1977. 62 pp. Report to Rep. Jack Kemp; by ilmer B. Staats, Comptroller General. Issue Area: Education, Traininq, and Employment Programs: Training and Employment Assistance Programs (1107). Contact: Human Resources Div. Budget Function: Education, Manpower, and Social Services: Training and Employment (504). Congressional Relevance: Buffalo, MY; Erie County, NY; Office of Management and Budget. Rep. Jack Kemp; Sen. Jacob K. Javits. Authot.ity: Comprehensive Emrloyment and Training Act of 1973 (29 U.S.C. 801). Wagner-peyser Act (29 U.S.C. 49). Social Security Act (42 U.S.C. 630). Emergency Jobs Programs Extension Act of 1976 (P.L. 94-444). During a 2-year period, about $40.8 million was provided to the city of Buffalo aid Erie County for unemployment programs, which need several improvements. Findings/Conclusions: A ranrom sample of people being paid unemployment money indicated that an average of 11 percent for the twc areas concerned ere ineligible and were being paid because of interviewer error. Prime sponsor officials screened applications and made a conscious effort to hire persons specified in the act for special consideration. However, neither area had foraal procedures to make sure that these groups did receive special consideration. Investigation of nepotism practices resulted in the dismissal of several participants from the programs. Neither prime sjonsor required applicants to furnish information on relatives working for local governments. Financial reporting records for the programs were not accurate. Buffaic's records did not provide information needed to determine if the funds budgeted for costs other than wages and employment benefits were reasonable, uor was the money used as required in some cases. Detailed accounting information was not provided by either prime sponsor about the number of participants in retirement plans. Title II and VI jobs, generally public service jobs, were filled above the expected levels, but moving participants into nonsubsidized positions was not successful. Recommendations: The data collected on potential recipients should be screened more carefully to insure proper use of funds, and corrective action against existing ineligible participants should be taken. Prime sponsors should obtain data identifying preference category applicants and adopt formal procedures to insure priority consideraticn to preference groups. Enough information should be gathered to combat nepotism. Department of Labor overseers should require the prime sponsor to be moia accurate in all phases of accounting and

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