Georgia Department of Labor Suite 642 148 International Boulevard N.E. Atlanta, Georgia 30303-1751 (404)656-3032 April 20, 1998 FOR IMMEDIATE RELEASE FULLERTON TO REINSTATE ATLANTA JOB TRAINING FUNDS ATLANTA -- State Labor Commissioner Marti Fullerton said today that she will reinstate funding for job training programs administered by the Atlanta Private Industry Council (PIC). Funds were halted February 19 as a result of financial and management problems uncovered by auditors. Following a review of the final documentation for the plan, which has been worked out in negotiations between state and city officials, Fullerton notified Atlanta Mayor Bill Campbell's chief of staff DeWayne Martin this afternoon that funding would be resumed on a conditional basis effective May 18 when new leadership is fully in place. "We have been working with the City of Atlanta in a cooperative manner to resolve the issues that led to our decision to halt the funding for the city's job training programs," said Fullerton. "As of today, we have received a management action plan for the City of Atlanta Private Industry Council, which addresses what we have asked them to do to correct the problems. "We have mutually agreed that their performance will be closely monitored to ensure compliance and continued funding," Fullerton stressed. "Working together with the City of Atlanta, we're hopeful the Private Industry Council will be restored to its former status of being one of the more effective job training programs in the country." Mayor Campbell said, "Reinstating funding to the city's Private Industry Council is the right thing to do. I am very pleased with the management plan that has been developed and look forward to the PIC's quick return as the best job training program in the nation." Under the terms of the management action plan, the city agreed to hire new experienced leadership to manage the city's job training programs, completely overhaul its financial system as it relates to Job Training Partnership Act (JTPA) funds and to meet bi-weekly with state JTPA staff to monitor the progress being made to correct the problems. (Note: attachments) NEWS MEDIA NEEDING ADDITIONAL INFORMATION SHOULD CALL THE GEORGIA DEPARTMENT OF LABOR'S OFFICE OF COMMUNICATIONS AT (404) 656-3032. E-mail: communications@dol.state.ga.us. FY-98-539 An Equal Opportunity Employer CITY OF ATLANTA PIC MANAGEMENT ACTION PLAN April 16, 1998 Staff Changes New leadership for the PIC has been identified. An individual with extensive JTPA experience has been recruited to oversee the management and operation of the PIC. Full authority will be given to this individual to assess staff and make any changes necessary to restore the PIC to a successful and efficient job training program. The new director will be on board full-time by May 18. In the interim, he will consult with a management team consisting of the Mayor's Chief of Staff, Chief Financial Officer, and Commissioner of Personnel and Human Resources. This team will provide temporary oversight to the PIC, ensure that elements of this action plan are executed as agreed, and provide support to the new director during the transition period. It will meet bi-monthly with the GDL to oversee progress towards resolution of outstanding issues and planning for the future. Improvements to Financial Systems Invoicing l Grant Accounting will prepare both weekly and monthly reports of grant expenses, detailed by vendor. Weekly reports will be forwarded to PIC each Monday for the preceding week, and the monthly report will be available by the 15th of each month. This report will facilitate reconciliation of grant activities and serve as a check and balance. l Invoices received by PIC prior to April 15, 1998, will be forwarded to Finance with a reconciliation form prepared by PIC, explaining any discrepancies in the invoice. l Invoices received from vendors by PIC after April 15, 1998, which have discrepancies will be returned to vendors for correction. l City will secure extra help for the PIC financial manager to clear up all delinquent invoices. Assistance should be available the week of April 21. All delinquent invoices will be forwarded to Grant Accounting for processing by the first week in May. Cash Advances l All forms accompanying cash advances or cash advance recovery will be color coded to distinguish them from requests for payment of invoices. Requests for cash advances will be yellow; requests to debit the cash advance account will be light green. Draw downs l The PIC financial manager will provide a cumulative draw down report for the period January through March 1998 by May 15, 1998. The last draw down report submitted to GDL was December 31, 1997. Source Documentation l PIC shall forward all original invoices to Grant Accounting for processing. Grant Accounting shall retain these original invoices in accordance with City policy and ensure that they are readily available for audit and review upon request. FSR for Program IIB l PIC financial manager will revise FSR for the Title IIB Program to conform with actual expenditures verified thus far of $1 million, 8 thousand for the period ending September 30, 1997. Revised FSRs for October 1997 through March 1998 will be submitted by the close of business April 30. l Massive Reconciliation PIC financial manager will develop a sub accounting system to ensure that the City's books of original entry coincide with reports submitted to GDL for all PIC programs for the period beginning July 1, 1997, through today. This accounting system will be completed by mid-summer. Vendor Payments The City is committed to paying all outstanding invoices by May 15, 1998. Technical Assistance The Georgia Department of Labor has committed to provide technical assistance and staff support to resolve outstanding procurement/contract, intake/assessment and financial issues. Training As needed and appropriate, the Georgia Department of Labor will provide training for PIC staff. Service Providers The new Executive Director, in conjunction with City officials, will set up meetings with all service providers to hear their experiences with the PIC, and discuss outstanding issues and recommended solutions for better relationships. These meetings will begin in mid-May. Unresolved Findings Staff will be designated to address the unresolved findings outlined in the communication dated April 7, 1998. These Findings represent a summary of the GDL's significant concerns and will be addressed over the next 60 to 90 days. They are grouped as follows: Category I Items that need immediate attention because they involve current contracts with potential disallowed costs. Development of future plans for the upcoming program year are also included: Summer Youth Program Year-Round Unified Welfare-to-Work Category II Items that are less time sensitive but include questioned costs. These include such items as the PY94 and PY 95 Audits which contain certain disallowed costs. Category III Items which require developing and strengthening administrative systems and operations.