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B-168811 1 (1970-05-12)

handle is hein.gao/gaobabksz0001 and id is 1 raw text is: RESTRICTED - Not tb be released outside the General Accounting Office except on ne basis of SPGCifc approval oby t e s o which is kePt by the D~~ ( WgPablcations ranch, OAS B-168811 RELEASED MAY 12 1970 <-1;7( Dear Mr. Roybal. In response to your letter of January 8, 1970, cosigned by Congressman George E. Brown, Jr., and as agreed in a meeting with Congressman Brown on January 26, 1970, we have reviewed the status of equipment that had been acquired for use in the now termfnated au- tomotive mechanics training project of the Transportation Opportunity _ (Corporation), in Pico Rivera, 1l-ornia, and have in- vestigated the assertions set forth in the material enclosed with your letter that closed-circuit-television equipment had been purchased by the Corporation for the program but had not been used for training purposes. Our review, made during February and March 1970 at the headquarters of the Corporation, included examination of pertinent corporate books and records, inspection of the major items of equipment, and discussions with officials of the Corporation. We also obtained information on the Corporation's activities from officials of the Department of Labor and the Department of Health, Education, and Welfare. The Transportation Opportunity Program is an experimental and dem- onstration manpower program funded jointly by the Department of Labor and the Department of Health, Education, and Welfare under authority provided by titles I and II of the Manpower Development and Training Act of 1962, as amended (42 U.S.C. 2571). Training is conducted by the Corporation, a nonprofit educational institution incorporated in the State of California. The Corporation's training program, begun in August 1967, was designed to train hardcore unemployed or underemployed persons as (I) professional heavy-duty-truck drivers or (2) automotive specialists in such skills as brake repair, front-end alignment, and tune-up. A third program component, diver education, was operated during the first program year, but was not funded thereafter. Federal contracts awarded to the Corporation have amounted to $2,818,627, as summarized below. Depaitment of Labor contracts gener- ally provided funds to pay the administrative costs of the program, and Department of Health, Education, and Welfare contracts generally provided funds to pay for training and educational costs, including equipment. 7

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