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HRD-81-132 1 (1981-07-31)

handle is hein.gao/gaobabcga0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE K. , -: WASHINGTON, D.C. 20548 HUMAN RESOURCES July 31, 1981 DIVISION The Honorable Albert Angrisani Assistant Secretary for Employment and Training Employment and Training Administration U.S. Department of Labor 115943 Dear Mr. Angrisani.: Subject.: mproper Payments of Basic Hourly Allowances to CETA Participants/ (HRD-81-132) During our current review of Labor and prime sponsor manage- ment of CETA funds (Code 205018), we found that four of the eight prime sponsors we visited were paying training participants a basic hourly allowance instead of a weekly incentive allowance as required by Labor's regulations. Because the hourly allowance payments were considerably more than the weekly incentive allow- ance, a significant amount of CETA funds was spent inappropriately. We are bringing this matter to your attention because the apparent cause of the problem is the improper interpretation of Labor's regulations. Furthermore, because of the decentralized nature of the CETA program, similar conditions may exist elsewhere. Our findings and recommendations to you are discussed in more detail in the following paragraphs. Labor's rules and regulations (20 C.F.R. part 676) provide for the payment of basic hourly allowances to CETA participants for time spent in classroom training. An exception to this pro- vision is that a $30 per week incentive allowance, in lieu of a basic hourly allowance, should be paid to participants who are receiving public assistance, or whose needs or income are taken into account in determining public assistance payments to others. Elsewhere, the regulations (20 C.F.R. part 675) define public assistance as Federal, State, or local government cash payments for which eligibility is determined by a need or income test. We examined payments by Philadelphia's Office of Employment and Training and found that during fiscal years 1980 and 1981 it paid a number of CETA participants basic hourly allowances ($2.30 and $3.35 per hour during fiscal years 1980 and 1981, respec- tively) for time spent in classroom training, even though the participants were also receiving general assistance payments from the State of Pennsylvania. We brought this matter to the attention of your Region III office in April 1981. The region subsequently confirmed our finding and instructed the prime (205018) r-, / 7 7/a'

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