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089915 1 (1974-07-25)

handle is hein.gao/gaobacvvj0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 MANPOWER AND WELFARE JUL 2 5 1974 DIVISION Mr. Fred G. Clark Assistant Secretary for Administration and Management Department of Labor Dear Mr. Clark: Pursuant to a request of Senator George McGovern, we examined the financial activities relating to the cost-reimbursement contract awarded by the Department of Labor to the Jobs For Veterans, Inc., Arlington, Virginia. The contract was awarded to provide technical and administrative assistance to the Chairman of the National Committee, Jobs For Veterans, which had been established by the President to seek improved employment and training opportunities for former servicemen--particularly Vietnam-era veterans. In general, Jobs For Veterans, Inc., undertook a large scale publicity campaign to encourage public officials and employers to assist veterans _n obtaining priority in employment opportunities. It urged the formation of Job Fairs, Opportunity Days, Job Clinics, Job Information Marts and Vererans Assistance Days to provide the means for employers to meet arsonally with veterans. The contract was signed on February 2, 1971, and funded in the amount of over $842,000 through its expiration date of March 31, 1974. Our review was directed primarily to determining whether funds -re expended in accordance with terms of the contract, We obtained a record of expenditures for the period February 2, 1971, through February 2o, 1974, and tested selected accounts to determine their accuracy. Our work was performed at the Jobs for Veterans office in Arlington, irginia and at the Manpower Administration in Washington, D.C. We found (1) errors in accounting records and in monthly cost reports submitted to Labor, (2) reimbursement for travel expenses not in accordance with the contract, (3) questionable procurement practices by the contractor, (4) expenses for legal services rendered outside the contract period, (5) problems in the contractor's internal control, and (6) no onsite monitoring of the contractor's fiscal management by the Department of Labor. While many of the dollar amounts involved in these areas are small, we believe they indicate weaknesses in contract administration by the Department which should be corrected. Details of our findings are included in enclosures I and II. lm mu n um m l

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