[Comments on Settlement of Federal Claim Against Louisiana]

Pursuant to a congressional request, GAO commented on Louisiana's request to renegotiate with the Department of Labor its repayment of disallowed Job Training Partnership Act expenses. GAO noted that: (1) Labor initially refused the state's request because it misinterpreted the applicable regulation as limiting the repayment period to 3 years, which the Department of Justice supported; (2) the regulation only recommends the 3-year limitation and it may be disregarded if the facts and circumstances of a particular case merit doing so; and (3) following a conference with GAO and Justice, Labor agreed to discuss with the state the possibility of renegotiating the repayment schedule, subject to a review by Justice.