From July 1, 2011, through June 30, 2012, the Office of Job Corps (Job Corps) spent $21.2 million on student travel expenses for initial trips to Job Corps centers, admissions, transitions (e.g., transfers and separations), and winter and summer break. This report highlights instances where hundreds of thousands of dollars in government funds were misused or wasted because Job Corps lacked basic internal controls over its student travel expenses, and opportunities where funds could be put to better use.
OIG identified $249,477 in questioned costs due to center staff and students using prepaid debit cards for personal gain and $116,633 in wasteful spending on unnecessary merchant fees for the cards and unused card balances. OIG also identified frequent suspensions of center government purchase card accounts due to delinquency or non-payment, costing Job Corps at least $496,258 in lost discounts on government airfares and merchant fees; $39,747 in questioned costs due to unsupported travel expenses (projected to $4.2 million based on statistical testing); and non-compliance with competitive bidding requirements.
The New American: Job Corps Wasted Millions Via Debit and Govt. Purchase Cards: ReportRead the full report