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B-130515 1 (1970-11-06)

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        Accounting @bfice except on the basis of s~iec c approval
        by the Office of Legisative LVaison, a record o whieh is kept
b        y t h e D t r ib u t , o S e cto n , P ub i c a I o E 1T E i ST A
                    COMPTROLLER GENERAL OF T E UN
                              WASHINGTON 0 C 20548
             ~RELEASED


 B-130515                                  November 6, 197O



 Dear Senator Bellmon:

      This report is in reply to your letter of June 2, 1970, requesting
 that we examine into possible irregularities in the operation of a Depart-
 ment of Labor Neighborhood Youth Corps project sponsored by the Caddo
 Electric Cooperative oi Binger, Oklahoma. The project was discontinued
 in January 1969. The alleged irregularities were described in a letter
 to you dated April 22, 1970, from Mr. Gerald Marlett of Union City$
 Oklahoma.

     As suggested in your letter, we interviewed Mr. Marlett to obtain
 the specific information he had concerning the alleged irregularities.
 In addition, we reviewed pertinent records and interviewed officials at
 the Department of Labot's regional office in Dallas, Texass and at Caddo.
 At Caddo we interviewed the two individuals who had served as director
 and assistant director of the project. We also visited certain private
 establishments in Hinton and Anadarko, Oklahoma, which were mentioned in
 Mr. Marlett's letter to you.

      Our examination was directed toward ascertaining whether the matters
 specified in Mr. Marlett's letter constituted irregularities in the oper-
 ation of the project and not toward an overall evaluation of either the
 Neighborhood Youth Corps program or the project headquartered at Binger.
 Although we found that the information furnished by Mr. Marlett was cor-
 rect in many respects, our examination did not indicate any improper
 expenditures of project funds.

      The results of ouz examination are set forth below, preceded, for
 your information, by a brief description of the Neighborhood Youth Corps
 programs

 NEIGHBORHOOD YOUTH CORPS PROGRAM

     The Economic Oppoitunity Act of 1964, as amended (42 U.S.C. 2701),
 authorized the establishment of the Neighborhood Youth Corps program.
 This program provides Federal funds and technical assistance to public
 or private organizations that sponsor and operate work-training projects
 for students and unemployed young men and women from low-income families
 who need funds to continue or resume their education or work experience
 in order to become employable. The act authorizes the Director, Office
 of Economic Opportunitys to formulate and carry out the program. The
 program is administered, however, by the Secretary of Labor, pursuant to
 a delegation of authority from the Director, Office of Economic Opportunity,

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