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September 12th, 2012 By German Lopez | News | Posted In: Government, News, Economy, Spending

Inspector General: ODJFS Wrongly Reimbursed Companies

Hired organizations did not properly comply with federal stimulus requirements

randall meyerOhio Inspector General Randall Meyer

Ohio’s inspector general released a report today criticizing the Ohio Department of Job and Family Services (ODJFS) for improperly reimbursing federal stimulus funds to hired organizations that did not follow rules.

In a statement, Inspector General Randall Meyer’s office said ODJFS “failed to adequately oversee federal grant funds applied to the Constructing Futures jobs training initiative for Central Ohio.”

The report released by Meyer’s office today, which focused on stimulus programs in central Ohio, outlined a few instances of ODJFS failing to oversee proper standards. In total, the department, which was put in charge of carrying out job training funds in Ohio from the stimulus package President Barack Obama signed into law in 2009, wrongly reimbursed companies it hired for $51,700.81.

In central Ohio, ODJFS hired two organizations to carry out the job training program, or Workforce Investment Act: Associated Builders and Contractors, Inc. (ABC) and Construction Trades Networks (CTN). At ABC, the inspector general found limited problems with faulty reimbursements involving a newspaper subscription, travel and mileage totaling less than $100. The money was not accounted for as a questionable cost since it was so small.

However, at CTN, the faulty reimbursements piled up.

The organization was reimbursed $560.61 for phone calls made prior to being hired as part of the federal grant. It was also reimbursed $1,613.62 for its invoices, even though documentation was not provided to link phone calls as necessary to the grant program.

Under the federal stimulus rules, CTN was required to provide 25 percent of its own funds for the program. CTN planned on using $91,800 of in-kind funds — payment that isn’t cash — by paying for trainee wages. The organization paid $60,927.70 by the end of the grant period, and the organization was reimbursed for $49,526.64 by ODJFS, even though the charges were supposed to be carried by CTN. The inspector general requested CTN give the money back to ODJFS.

When the inspector general contacted the organization to explain the findings, CTN attributed the requests for faulty reimbursements to confusion caused by multiple administrative changes at ODJFS.

“In addition, monitoring visits by ODJFS were not conducted until after the grant period expired, even though the partnerships were told the visits would occur as grant activities were underway,” the report said.

Meyer’s office concluded ODJFS should review the questioned costs, work to keep consistent guidelines through administrative changes and monitor grant funds during the grant period.

The full inspector general report can be found here.

A report was released for northwestern Ohio was released on May 10, and it also found wrongdoing. It can be found here. A report for stimulus programs in southwestern Ohio will be released later.

ODJFS could not be immediately provide comment on the report. This story will be updated if comments become available.

UPDATE (3:28 P.M.): Benjamin Johnson, spokesperson for ODJFS, provided a comment shortly after this story was published.

“As the report mentions, these were expenditures by local entities, not by the Ohio Department of Jobs and Family Services, he says. We appreciate the inspector general bringing this to our attention, and we'll work to resolve the matter.”

 
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