Employment Programs in Buffalo and Erie County Under the Comprehensive Employment and Training Act Can Be Improved

During a 2-year period, about $40.8 million was provided to the city of Buffalo and Erie County for unemployment programs, which need several improvements.

A random sample of people being paid unemployment money indicated that an average of 11 percent for the two areas concerned were ineligible and were being paid because of interviewer error. Prime sponsor officials screened applications and made a conscious effort to hire persons specified in the act for special consideration. However, neither area had formal procedures to make sure that these groups did receive special consideration. Investigation of nepotism practices resulted in the dismissal of several participants from the programs. Neither prime sponsor required applicants to furnish information on relatives working for local governments. Financial reporting records for the programs were not accurate. Buffalo's records did not provide information needed to determine if the funds budgeted for costs other than wages and employment benefits were reasonable, nor was the money used as required in some cases. Detailed accounting information was not provided by either prime sponsor about the number of participants in retirement plans. Title II and VI jobs, generally public service jobs, were filled above the expected levels, but moving participants into nonsubsidized positions was not successful.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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