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Improper Payments of Basic Hourly Allowances to CETA Participants

HRD-81-132 Published: Jul 31, 1981. Publicly Released: Jul 31, 1981.
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Highlights

GAO reviewed the Department of Labor and prime sponsor management of CETA funds. GAO found that several prime sponsors were paying training participants a basic hourly allowance instead of a weekly incentive allowance as required by Labor's regulations. Because the hourly payments were considerably more than the weekly allowance, a significant amount of CETA funds was spent inappropriately.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Labor GAO recommended that Labor remind prime sponsors, either directly or through the regional offices, that both Federal and nonfederally funded assistance payments are to be considered when determining eligibility for training allowances. GAO further recommended that Labor direct the regional offices to ascertain how prime sponsors are determining eligibility for training allowances during their annual assessments and other periodic reviews.
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Topics

CompensationEducational allowancesEligibility criteriaEmployment assistance programsRegulationStudentsCETA programsPublic assistance programsFederal regulationsLocal governments