Summary of Report 01-022

March 2001

Report Number 01-022

The six local workforce boards (boards) we audited are progressing at varying rates in addressing weaknesses in accounting for funds and contact management reported in a prior audit report (An Audit Report on Welfare Reform Implementation at the Texas Workforce Commission, SAO Report No. 99-051, August 1999); however, in some cases significant improvements still must be made. At most boards, improvements are still necessary in the following areas: ensuring proper accounting for program funds, managing contracts with service providers, and/or ensuring data integrity. The audited boards are generally using funds as intended to provide jobs skill training and client support services. Data errors, introduced at the local board level, in The Workforce Information System of Texas (TWIST), compromise the usefulness of this system and its information. In fiscal year 2000, 56 percent of net clients who exited four major workforce programs administered by the boards left with employment. Almost all of the remaining 44 percent of net clients received training or other services.

• The audited boards are generally using funds as intended to provide jobs skill training and client support services to eligible individuals. We were unable to determine the appropriateness of some expenditures at two boards due to poor documentation.
  
  
• While the audited boards have basic contract administration structures and processes in place, in some cases significant improvements in contract monitoring areas such as staffing, coverage, and risk assessment are still necessary. The Texas Workforce Commission (Commission) reported that half of the 28 boards failed to meet either required expenditure targets or local matching funds requirements during fiscal year 2000. As a result, a total of $10.1 million in childcare funding was taken from these 14 boards and redistributed through reobligations.
  
  
• Our system testing revealed that TWIST handles data properly in performing calculations and generating reports. However, its usefulness has been impaired because boards have made data entry errors and have failed to maintain critical supporting documentation. Additional testing revealed that 29 percent of former employees at nine boards still had access rights to TWIST. As a result, there is an increased risk of unauthorized users accessing TWIST and changing records.
  
  
• We found that 56 percent of the 85,602 net clients who exited the Commission's four major workforce programs during fiscal year 2000 left with employment, according to TWIST data. The Commission could benefit by tracking performance using an additional systemwide measure that evaluates its programs as they are managed (as parts of a comprehensive, one-stop service network). For example, the Commission should measure combined outcomes for all programs.

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