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GAO reviewed the fiscal management practices and procedures at 8 Comprehensive Employment and Training Act (CETA) prime sponsors and 23 subgrantees in 4 Department of Labor regions.
Recommendations for Executive Action
|Department of Labor||1. The Assistant Secretary of Labor for Employment and Training should take the following actions to identify and correct problems resulting in the Federal Government incurring unnecessary interest costs because of excess cash held by prime sponsors and their subgrantees: (1) emphasize to the Employment and Training Administration regional officials the need to conduct onsite reviews and to help prime sponsors seek changes to their and subgrantees' operations for eliminating excess cash; (2) emphasize to prime sponsors that they work first with their largest subgrantees to identify excess cash balances; and (3) carry out as soon as possible the plan for requiring each prime sponsor to identify and promptly recover any unexpended funds held by subgrantees at the end of each fiscal year.|
|Department of Labor||2. The Assistant Secretary of Labor for Employment and Training should direct Employment and Training Administration officials to emphasize to prime sponsors: (1) the importance of establishing property records, periodic physical inventories, and controls to prevent loss or theft of property; (2) their responsibility for CETA property held by subgrantees; (3) that Labor's regulations requiring approval of property purchases include property acquired through lease-purchase arrangements and property purchased by subgrantees; and (4) their responsibility for acting on recommendations of correcting problems identified by the Labor Inspector General, independent auditors, and prime sponsors' independent monitoring units.|
|Department of Labor||3. The Assistant Secretary of Labor for Employment and Training should direct the responsible regional offices to take steps to recover funds expended for nonallowable items or purposes.|