The Employment and Training Administration Needs to Improve Oversight of Grants Awarded in Texas

View Report

Date Issued

Wednesday, June 10, 2026

Submitting OIG

Department of Labor OIG

Agencies Reviewed/Investigated

Department of Labor

Report Number

19-26-003-03-391

Report Type

Audit

Special Projects

Pandemic

Agency Wide

Yes

Number of Recommendations

Questioned Costs

$1,036,822

Funds for Better Use

$218,046,201

Report updated under NDAA 5274

External Link

https://www.oig.dol.gov/public/reports/oa/2026/19-26-003-03-391.pdf

Open Recommendations

This report has 10 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
001	No	$0	$218,046,201
Develop and implement controls to ensure more efficient use of statutory grant funds, which should include performing data analytics on grant spending and performance data.
002	No	$0	$0
Establish and implement procedures to collect and analyze detailed financial data on career services expenditures, which should include identifying the reason for the growth in career services.
003	No	$0	$0
Develop and implement controls to ensure ETA leadership and other stakeholders are aware of the complete administrative costs—including those of workforce entities currently exempt from reporting administrative costs—incurred by the WIOA statutory grant programs.
004	No	$0	$0
Develop guidance for grant recipients and subrecipients to clarify how to determine if an expenditure materially increases the value or useful life of a capital asset.
005	No	$0	$0
Establish a dollar threshold for construction projects over which grant recipients need to obtain approval from ETA.
006	No	$998,253	$0
Remedy the $998,253 in questioned costs associated with construction.
007	No	$23,718	$0
Remedy the $23,718 in questioned costs due to not reconciling the provisional rate with the final indirect cost rate.
008	No	$14,581	$0
Remedy the $14,581 in questioned costs associated with the Texas State Board director’s salary expense charged directly to the statutory grant programs.
009	No	$0	$0
Develop guidance that clarifies what documentation is required to support individualized career services provided to participants by grant recipients and subrecipients.
010	No	$0	$0
Ensure ETA officials responsible for monitoring grant recipients enforce the documentation requirements in their grant agreements.