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HRD-80-109 1 (1980-09-18)

handle is hein.gao/gaobabbap0001 and id is 1 raw text is: 



UNITED STATES GENERAL ACCOUNTING OFFICE
        WASHINGTON, D.C. 20548


B-195620


SEPTEMBER 18, 1980


The Honorable Ray Marshall
The Secretary of Labor

Dear Mr. Secretary:

        Subject: J--e Employment And Training Administration
                  Should Stop Using State Agencies To Pass
                  Funds Through To Contractor7(HRD-80-109)

     Offices in Labor's Employment and Training Administration
 (ETA), by arranging for pass through agreements to obtain
 services for several of their activities, have effectively
 circumvented procurement and award administration safeguards
 designed to ensure that Federal moneys are properly and effec-
 tively spent and that agencies are accountable for their pro-
 curement actions. A pass through agreement is a procurement
 initiated and principally carried out by ETA, but entered into
 by a State and a contractor using Federal funds granted to
 the State. The results of the work have nationwide or regional r
 application rather than primarily accruing to the State.

     We discussed with Labor headquarters and region IX offi-
cials and with Nevada Employment Security Department officials
the origin of and contractual responsibilities for nine pass
through agreements in Nevada. In addition, ETA officials ident-
ified nine other possible pass through agreements (nationwide)
for us. We limited our work to the Nevada agreements since
at the time the agreements were identified for us the nine
Nevada agreements comprised half the number of agreements and
$2,161,737 (60 percent) of the $3,606,419 nationwide total.
The Nevada agreements ranged from $14,840 to $1,350,000 and
spanned several fiscal years. These nine agreements were sche-
duled to terminate prior to 1980, although one agreement is
now handled through the State of Michigan and is scheduled to
end in 1981.


11333ill E 1  llIl Il II
     133


(203060)


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HUMAN RESOURCES
   DIVISION


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