New York City Department of Employment

Job Training Partnership Act, Better Contracting and Monitoring Procedures Will Improve Program Outcomes

The Job Training Partnership Act (JTPA) is a Federal program to fund the nation's primary employment training programs.The New York City Department of Employment (DOE), received $102 million in JTPA funds in 1994. DOE fulfills its responsibility under the JTPA program by contracting with vendors qualified to provide training and employment services. The intent of the JTPA program is for participants to complete their training and achieve a specific level of educational and skill competency needed for employment. However, we found that some participants were terminated from the program without gaining any benefits, and most participants did not get a job. Our review of five contracts valued at $5.5 million indicated that none of the five sampled contractors was able to achieve DOE's contract job placement performance goals. As a result, the unit cost of participant placements was higher than anticipated because of the large number of participants with unsuccessful outcomes. For example, the unit cost of participant placement for one contractor was $9,882 compared to an expected unit cost of $6,746. Moreover, DOE contract managers failed to properly monitor contractor activities. We made eight recommendations toward improving the effectiveness of DOE's administration of its job placement and training program. DOE agreed with all of our recommendations and indicated that implementation for many had already been in progress prior to completion of our audit. A-4-95