COVID-19: The Employment and Training Administration Needs to Improve Oversight of Grants Awarded in New York

View Report

Date Issued

Friday, September 26, 2025

Submitting OIG

Department of Labor OIG

Agencies Reviewed/Investigated

Department of Labor

Report Number

19-25-008-03-391

Report Type

Audit

Special Projects

Pandemic

Agency Wide

Yes

Number of Recommendations

Questioned Costs

$25,391,220

Funds for Better Use

Report updated under NDAA 5274

External Link

https://www.oig.dol.gov/audit-reports-results.htm?s=&y=2025&a=all

Open Recommendations

This report has 6 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
001	Yes	$0	$0
We recommend the Assistant Secretary for Employment and Training establish and implement data verification checks to ensure participants reported are unique individuals who obtained services through Workforce Innovation and Opportunity Act programs while strengthening controls to properly exit participants after 90 days without services.
002	Yes	$0	$0
We recommend the Assistant Secretary for Employment and Training establish and implement a plan to improve monitoring activities to ensure grant recipients and sub-recipients are properly documenting eligibility and ensuring participant-level services are delivered by each program in which the participant is co-enrolled.
003	Yes	$19,639,718	$0
We recommend the Assistant Secretary for Employment and Training remedy the $19,639,718 in questioned costs associated with the contractual service contracts awarded in non-compliance with federal requirements.
004	Yes	$5,751,502	$0
We recommend the Assistant Secretary for Employment and Training remedy the $5,751,502 in questioned costs associated with payroll and non-payroll costs.
005	Yes	$0	$0
We recommend the Assistant Secretary for Employment and Training establish and implement a plan to increase the level of technical assistance and monitoring for grant recipients and sub-recipients to ensure they comply with the general procurement standards.
006	Yes	$0	$0
We recommend the Assistant Secretary for Employment and Training develop and implement a formal comprehensive Conflict of Interest Policy to ensure staff are actively monitoring, identifying and resolving conflict of interest issues.