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B-130515 1 (1971-07-26)

handle is hein.gao/gaobabkps0001 and id is 1 raw text is: RUT MD Rt to be uteased ontl General Aesountk~ng Office axe(4,t ou-dhe basis of sp re by the C101e of Usilgrbasieni fltIAtons, WASHINGTON. D. 8 B-13osls RELEASED Dear Mr. Chairman: r) Vol P-2O00 In response to the Committee's request of December 18, 1970, we reviewed the current status of corrective actions taken on certain prior years' fiscal irregularities found in the Department of Labor's Neighborhood Youth Corps pro- gram in New York City. These matters were discussed in our report of October 14, 1969 (B-130515). As in our earlier work, we confined our efforts primarily to obtaining and eval- uating information furnished to us by officials of the vari- ous agencies involved in the administration of the program. The Neighborhood Youth Corps program in New York City consists of the in-school, the out-of-school, and the summer component programs. Federal funds totaling $94 million were authorized from the inception of the program in February 1965 through June 30, 1969. From July 1, 1969, through June 28, 1971, an additional $56.3 million was authorized, of which $19 million was for the 1971 summer program. The funds currently are being expended under contracts between the Department of Labor and the Youth Services Agency, a constituent agency of the Human Resources Administration, and the city of New York. The Youth Services Agency in turn operates through agreements with delegate agencies; 35 dele- gate agencies participated in the 1970 summer program. CONTINUING PROBLEMS IN ACCOUNTING AND INTERNAL CONTROLS Our October 1969 report stated that information fur- nished to us indicated that substantial amounts of Neighbor- hood Youth Corps funds, principally the summer program payroll funds, had been misappropriated by employees of the sponsors and of the delegate agencies. Investigators concluded that it was not practicable to determine the total amount of funds misappropriated, but they estimated that losses of about $1.5 million were sustained under the 1967 and 1968 programs. These losses were due largely to payments involving nonexis- tent payees and nonexistent jobsites. Our report pointed 50TH ANNIVERSARY 1921-19711

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