Texas Workforce Commission
An Audit Report on Welfare Reform Implementation
at the Texas Workforce Commission
August 1999
Report Number 99-051
Overall Conclusion
The Texas Workforce Commission (Commission) has neglected the fiscal and administrative integrity of certain workforce programs it oversees. While the scope of this audit focused on Temporary Assistance for Needy Families (TANF), the problems identified have implications for other programs overseen by the Commission and administered by the local workforce development boards (boards). The Commission does not entirely agree with the results of our work.
At the direction of the Legislature, the Commission was given the responsibility of consolidating 28 workforce and welfare programs, forming the local workforce boards, and transferring responsibility and oversight of these programs to the boards. The Commission has achieved the legislative objective of establishing the structure for delivery of services by the boards. Twenty-six boards are now operational. However, the Commission failed to provide a foundation of fiscal and administrative oversight and support to ensure that funds are spent appropriately.
Key Facts and Findings
In fiscal year 1999, the Commission held contracts with boards totaling over $820 million in TANF and other workforce program funds.
The Commission certified 16 of 26 boards for operation before the boards had adequate business systems to administer the funds. Subsequently, Commission monitors have identified many recurring findings at 13 of these boards.
During the board formation process, the Commission procured $9.6 million in direct employment placement contracts through a flawed process. The procurement process did not ensure that the Commission paid a fair price for services or that the bidders were financially sound.
The Commission's process for monitoring boards has gaps that allow problems to remain unresolved. Many boards do not monitor their contractors. The Commission does not consistently compensate for this gap by conducting its own monitoring of the boards' contractors.
The Commission has not monitored 13 direct contracts totaling $9.6 million. Our review of $3.85 million in payments to employment placement contractors estimated $1.25 million in performance-based payments that were not supported by Commission data.
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