The Job Training Partnership Act: Abuse of On-The-Job Training and Other Contracting Is an Ongoing Problem

GAO discussed its review of mismanagement and abusive practices within the Job Training Partnership Act (JTPA) Program, focusing on: (1) the abuse of on-the-job training (OJT) funds; and (2) other practices of mismanagement and abuse. GAO noted that: (1) JTPA services include occupational training, basic education, OJT, work experience, and job search assistance; (2) state and local programs provide the majority of JTPA services, although the Department of Labor (DOL) has overall responsibility for the program; (3) under OJT, employers provide participants with training in particular occupations for specified lengths of time and are reimbursed for half of the participant's wages; (4) many OJT contracts for lower skill jobs exceed the recommended time limits for training, which depletes JTPA funds; (5) local programs misuse funds by training individuals for jobs in which they already had significant work experience, by subsidizing a current employee's wages and by providing training normally paid for by the employer; (6) DOL has asserted that it would address OJT abuses, but the problems are continuing; and (7) Congress has passed bills to amend JTPA to limit the length of OJT. GAO also noted that: (1) state and local programs have improperly spent JTPA funds on administration and follow questionable contract administration and monitoring practices; (2) most programs misrepresent program expenditures by underreporting administrative costs and make improper payments to training vendors; and (3) federal and state agencies do not adequately oversee and monitor JTPA programs.