Job Corps Fraud Blog

Nationwide mismanagement of Job Corps calls for action!

Audit Reports of Job Corps from the Office of the Inspector General (OIG)

The following link will take you to the Office of the Attorney General’s (OIG) website.  You will find audit reports where Job Corps Centers and Job Corps Contractors did not follow required policy procedures in the areas of awarding sub contracts to vendors. And, where numbers and statistics where overstated in order to bring the center higher in overall rankings. The very first one speaks of questionable “overstatement” of costs by MTC Corporation (Management and Training Corporation) of over one million dollars.  Take note, MTC is a name you will hear often in the audit reports for their continuing practice of “overstating” costs and erroneous records reflecting “overstated” outcomes on their reports. OIG says “this is a continuing problem.” Read the reports… Read the rest of this entry »

Filed under: Adams and Associates, Contractors, Department of Labor, DOL, Fraud, Improper billing, Job Corps, Job Corps Centers, Management and Training Corporation, number manipulation, OIG Reports, Performance, Shriver Job Corps Center, , , , , , , , ,

Powerpoint Presentation from OIG (Office of the Attorney General) Covering 2008 – 2012 Job Corps Audits

The following Powerpoint presentation by the Office of the Inspector General (OIG) tightly summarizes the results of audits 2008 – 2010 and gives a partial representation of more recent audits.  (Please note the link on the OIG home page to the left is where one would file a complaint with IOG about your Job Corps Center.)  Also, please be reassured that OIG WILL NOT give out your name or any identifying information. When I filed my complaint with the OIG I was still working at Shriver Job Corps. I filed it approximately 5 weeks before I quit. I wanted the OIG to give Shriver my name as, I wanted to be on site so I could show the investigator where all the documentation in my complaint was located. Unfortunately, that did not happen and I left before the investigation began.  OIG’s agents never gave my name to Shriver despite my wanting them to do so. Also, OIG’s staff are busy conducting other audits and they have severe time constraints due to the number of complaints and the number of available staff.  It will take awhile before the investigation commences.

See the presentation here:     (click on the link “Job Corps Presentaton”)  

Read the rest of this entry »

Filed under: Job Corps, , , , , , , ,

Office of the Inspector General Report to Congress Spring 2010

-verbatim from the OIG Report

Our audit work continues to reveal that the performance results (i.e., vocational training completions and student attendance) of some Job Corps centers were overstated because center operators did not ensure compliance with Job Corps’ policy and requirements.”

We conducted performance audits of five Job Corps Centers operated by three different companies under contract with the Office of Job Corps — Gainesville and Albuquerque Centers under DEL-JEN, Treasure Island and Miami Centers under ResCare, and Iroquois Center under Education and Training Resources.

The audits included coverage of the contractors’ safety programs, performance reporting, and financial activity at the centers; and each audit was expanded to address hotline complaints alleging improper practices by center management.

Read the OIG Report here, starting on page 30:

 

Filed under: Albuquerque, Contractors, DEL-JEN, Education and Training Resources (ETR), Gainsville Job Corps, Iriquois Job Corps, Job Corps, Miami Job Corps Center, OIG Reports, ResCare, Treasure Island Job Corps, , , , , , , , ,

Office of the Inspector General Report Minact Corporation August 2010

Read the entire OIG report here:

Mold, non compliance with safety and health inspections and retention of potentially violent students… the continuing saga of Job Corps and its “for profit” corporations who place greed before its public trust…

The newest Office of the Inspector General Report published August 10, 2010, found that Minact Corporation did not follow the requirements for reporting financial expenditures and managing safety and health programs at its Excelsior Springs Job Corps Center in Missouri.

The questionable expenditures amounted to $203,921 and in addition to not performing safety and health inspections as required, Minact did not follow federal disciplinary procedures nor convene all the Fact Finding boards (FFB’s) for level I and II infractions committed by students.  These level infractions include acts of physical violence committed upon others or threats of violence towards others. Non compliance with the regulations could expose staff and students to violent acts and unsafe conditions on centers. Readers may remember that I reported on this in this blog about Shriver Job corps retaining students who should have been separated because we needed the numbers in order to improve our OBS (On board Strength).  See article here:

Of particular interest to me are the photos of the mold growing on the ceiling of the culinary storage area, exposed ceiling tiles in a classroom, and protruding electrical outlet boxes on a classroom floor (Excelsior Springs Job Corps, page 13 and 14 of OIG report).  Would you want to send your child there… further… you are paying for this program through your taxes, are you satisfied that your tax dollars are being put to good use?

Minact Corporation operates the following Job Corps Centers:  Batesville Job Corps, Dr. Benjamin L. Hooks Job Corps, Gulfport Job Corps, Quentin Burdick Job Corps, Shreveport Job Corps, Excelsior Springs Job Corps, Gerald R. Ford Job Corps Civilian Conservation Centers, Hubert H. Humphrey  Job Corps, St. Louis Job Corps

Filed under: Batesville Job Corps, Contractors, Dr. Benjamin L. Hooks Job Corps, Excelsior Springs Job Corps, Gerald R. Ford Job Corps, Gulfpot Job Corps, Improper billing, Job Corps, MINACT, OIG Reports, Quentin Burdick Job Corps, Quentin Burdick Job Corps Center, Shreveport Job Corps, Shriver Job Corps Center, St. Louis Job Corps, , , , , , , , , , , ,

Martin Gross’ Conclusions about Job Corps and the Government Racket

So who is Martin Gross? He is a noted social researcher and scientist who has testified before Congress  on Government waste, “pork barreling” and “squandering of public funds”.

In this interview by Geoff Metcalf, Martin Gross discusses Job Corps and other job training programs.  Although the interview is about government waste as a whole, Gross is another lone voice wondering why Job Corps is touted as a success when it only graduates 14% of its attendees. When will anyone listen?

Read the interview here:

-excerpt

“We have 154 different job-training programs. At no point does anyone even claim that they get any jobs. They had a cosmetology job-training program that cost $148,000 per license. We have a job corps that costs $25,000 per kid, the residential program. They said 46 percent of the kids finished the program until the inspector general came in and said, “No, you’re lying; only 14 percent completed it.” We have job-training programs in all 14 cabinet agencies. And, when I said it was $17 billion wasted, when Nancy Kassenbaum took over in ’95 as head of Education and Labor, she said, “No, no, it’s not $17 billion; it’s $25 billion.”

Filed under: Job Corps, Job Corps Centers, Legislative and Congressional Reports, number manipulation, OIG Reports, , , , , , , ,

Jacksonville and Earle C. Clements Job Corps Centers and Accounting Audit Findings (OIG 2005)

From 2004 – 2005 the Office of the Inspector General performed an audit of 12 Job Corps Centers
WHY READ THE REPORT Read the report here: M.D. Oppenheim & Company, under contract to the U.S. Department of Labor, Office of Inspector General, conducted a performance audit of Job Corps Center operating costs at 12 contractor operated Centers for the period October 2004 through March 2005. Center operating costs are reported monthly to the Office of Job Corps on Form ETA-2110, Job Corps Center Financial Report, and include direct Center expenses such as Center staff salaries, student food, student clothing, utilities, and medical expenses, as well as contractor fees and indirect general and administrative expenses. The audit was performed in conjunction with the audit of the U.S. Department of Labor’s Consolidated Financial Statements for Fiscal Year 2005.
there was a lack of adequate internal controls over program expenditures at the Earle C. Clements Job Corps Center;
there was improper recording and reporting of indirect administrative costs at the Jacksonville Job Corps Center; and
journal entries were not properly approved, adequately supported, or correctly recorded at five Job Corps Centers.
Instances of noncompliance such as these can result in overbilling to the government and an increased possibility of fraud through the manipulation of accounting records.
Jacksonville Job Corps is operated by Applied Technology Corporation and Earle C. Clements Job Corps is operated  by Management and /Training Corporation.


Filed under: applied Technology Corporation, Earle C. Clements Job Corps, Fraud, Jacksonville Job Corps Center, Job Corps, Job Corps Centers, Management and Training Corporation, OIG Reports, , , , , , ,

Office of the Inspector General’s Message from 1999

Nothing ever changes… look at the names in this report and the fraud OIG found from eleven years ago: Adams and Associates (employee alleges fraud) and National Plastering Industry’s Joint Apprenticeship Trust Fund ($996,242 in disallowed costs).
But we still keep granting them contracts despite their number inflation and manipulation of records. Read a few excerpts:
“Our review of 67 student records found that 28 student records (42 percent) were improperly altered, inaccurate, or incomplete. Consequently, the number of students the Center reported as “vocational completers” was inflated and students were improperly paid training completion bonuses. Further, the altered records gave false assurances that the affected students received vocational training.”

-from the Semi-Annual Report to Congress page 57 about the National Plastering Industry’s Joint Apprenticeship Trust Fund
The OIG questioned a total of $996,242 of direct costs claimed by the trust fund and the grant officer disallowed all of these questioned costs.

The Report to Congress also mentions The US Forest Service and Connecticut Job Corps Center and its contractor ITT Federal Services Corps.
Due to missing or insufficient ITT documentation and accounting errors, our audit questioned costs of $297,892 in nonpersonnel and personnel costs ($176,385 in nonpersonnel costs, $98,880 in personnel costs, and $22,627 in general administrative expenses).

Filed under: Adams and Associates, Connecticut Job Corps, Contractors, Fraud, Improper billing, ITT Federal Service Corps, Job Corps, Job Corps Centers, Labor unions, Mississippi Job Corps, number manipulation, OIG Reports, U.S. Forestry Service, , , , , , ,

Reader’s comments to Treasure Island Worker’s Union files unfair labor charge

-From Harold

At Iroquois Job Corps, management staff were required to give up weekends on a rotating basis to act as “duty officer”. They also had to come in on weekends to oversee the return of students from breaks and participate in searching luggage for various contraband. Because they were salaried employees, there was no OT pay, nor was any comp time granted.

In fact, one could not earn comp time at any time working for ETR. This was not the case yrs ago with other corporations that ran Job Corps centers. There were enough staff on centers to manage the center on week ends and to do searches. Over-working the management staff and denying hourly staff their breaks has developed over the years and is obviously condoned by the government. This is a common finding in OIG reviews but other than paying a fine now and then, nothing is done about it.

Read the rest of this entry »

Filed under: Contractors, Education and Training Resources (ETR), Fraud, Iriquois Job Corps, Job Corps, Job Corps Centers, number manipulation, OIG Reports, Reader's Comments, , , , , , , , ,

A Former HR Employee’s Story

“I can attest to Christopher’s allegations as a former employee in Human Resources. It was common practice to do everything possible to dismiss an employee if they were able to perceive what was really going on at the center, if they “knew too much” already, or if they weren’t personally liked by management. If management had the slightest inkling that you had them figured out, then the disciplinary inquest would begin to find flaws in your performance so that termination could be recommended. This recommendation had to be approved by the corporate office before it could be executed.

In my case, termination was recommended after I had used my temporary managerial signing authority to approve two hospital bills from an employee who had been injured on the job. This employee had initially refused to visit the local hospital emergency room, but followed the directive by his immediate manager to be evaluated. His treatment was not covered under his insurance plan or the Workman’s Compensation program that was currently in place. The first reimbursement got approved for the employee and processed without question. The second did not get processed even though I had all approval signatures and followed the same procedure as I did for the first. The Finance Manger had “noticed” this was an unusual situation after already processing the first reimbursement, and had disagreed with the employees request after the fact. He did not like me personally because I wouldn’t give his dysfunctional accountant the “special treatment” she expected. Instead of telling her to stop complaining and whining about how she didnt think I “liked her”, he blamed his inability as a manager to correctly discipline her for gossiping in the workplace on me, and was constantly looking for ways to get me into trouble. Anyway, the employee reimbursement issue was determined to be my fault.

My termination recommendation was so lame and without merit that it was obviously denied by the corporate office, but shortly before this my poor excuse for a “manager” asked me if everything was o.k. because I had been unusually quiet in the office. I’m sure she was able to sense that I had things figured out, since I wanted as little dialogue with her as possible. This same “manager” joined my health club a few weeks later. I did not attempt to engage in any contact with her on a social level, but still gave her the required “respect” of a direct report while in the workplace. I think this confirmed to her what she had originally suspected, and termination was again recommended for me after I inadvertently reported foul  language being used while attempting to accomplish a task with a nearly impossible deadline. This task was completed, but the decision was already made to proceed with termination. It was proven during a DUA hearing that there was no misconduct or willful disregard to the employer units best interest. The state of Massachusetts ruled in my favor, and I won my case.
The only positive aspect of being employed there was that the workplace was only a two minute commute, which worked out well during the 2008 gas crisis. The dental plan was also good, but I hated every second of working there. The pay scale was low, and only the employees who were “robotic” and agreed with everything management said and did were eligible for merit increases and the monthly awards that were given out. That was the price, and those were the payoffs.

The most contradictory element in all employee relations was the evaluation process. No matter how positive or “perfect” an employee’s performance was, there had to be something negative included as an “area needing improvement”. If nothing was documented in this area, the evaluation would be sent back to the reporting manager, and “something wrong” would have to be found. However, the results of the 2009 audit by the Office Of The Inspector General revealed that management was falsifying statistics and inflating numbers to continue to receive funding from Congress.

The Department Of Labor also conducted a separate investigation which revealed that hourly employees were not being compensated for working through lunch breaks, along with not being paid their legal overtime rate beyond 40 weekly hours. If overtime hours were recorded on a time card, or if a lunch break not taken, the time card would be rejected and a “correction” would be required before it could be processed for payroll. How could their “policies” regarding employee evaluations (or anything else) be respected if they were ordered by the DOL to reimburse hourly employees thousands of dollars in overtime back pay (some employees received in excess of $2,000.00), and their false reporting resulted in reprimands from the OIG and fines of over $14,000.00?”

Filed under: Department of Labor, DOL, Employees, Job Corps, OIG Reports, Reader's Comments, wage and hour investigations, , , , , , , , , , , ,

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What’s On this Website?

Make sure to click on the individual categories listed on this page... *Office of the Inspector General (OIG) Audit Reports showing number manipulation, fraudulent statistics and false inflation of numbers of graduated students... *Legislative and Congressional Reports detailing testimonies from Senators and Congressmen that Job Corps is inneffective... *Newspaper articles and books about Job Corps

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