State Has Maintained Limited Oversight of Exchange Programs

State has not exerted sufficient management oversight of the Summer  Work Travel and the Trainee programs to guard against abuse of the  programs. Moreover, some sponsors believe that the program regulations  need updating, and State officials have expressed concerns about the  enforceability of the sanction/revocation process provided for in the  Exchange Visitor Program regulations. State has acknowledged  problems, is establishing a compliance unit to monitor program activities,  and is revising the regulations; however progress has been slow. A number of potential risks are associated with the  Summer Work Travel and the Trainee programs, including the risk of  participants using the programs to remain in the United States beyond their  authorized time. There is also the potential for the Trainee  Program being misused as an employment program, although State does  not have data on the extent that such abuse occurs. However,  these studies are not always statistically valid. Upon further  investigation DHS found that the individual had brought 17 trainees to the  United States to participate in the university’s training program. Occasionally, the exchange participants have negative experiences as a  result of exploitation by a third party. However, State has not exercised sufficient management oversight of the  programs to ensure that they operate as intended and are not abused. State  has taken some action to address identified deficiencies, such as beginning  efforts to revise the regulations; but progress has been slow. Assessing such  risks is a necessary step to mitigating the risks. Scope and Methodology

To examine how State manages the Summer Work Travel and the Trainee  programs to ensure that only authorized activities are carried out under the  programs, we reviewed previous GAO and OIG reports, program regulations and  guidance, cables, sponsors’ annual reports, and other information  pertaining to the programs; reviewed program files maintained by the Bureau of Educational and  Cultural Affairs, Office of Exchange Coordination and Designation, for  selected Summer Work Travel and Trainee sponsors to gain an  understanding about the kinds of problems that the sponsors report to  the Department of State (State) and how State has addressed them;  interviewed State officials, including the Bureau of Educational and  Cultural Affairs and the Bureau of Consular Affairs, and the Department  of Homeland Security (DHS) to discuss how the U.S. government  manages the programs;  interviewed Department of Labor (Labor) officials about the impact of  the programs on the U.S. labor market, and the Social Security  Administration on issues related to Social Security cards for exchange  visitors; and met with nine sponsors of the Summer Work Travel Program that  accounted for 75 percent of the participants in 2004 and 13 sponsors of  the Trainee Program that accounted for 54 percent of the participants in  2004, as well as an official of an association of exchange program  sponsors to discuss how sponsors carry out their monitoring and  oversight responsibilities.
Why GAO Did This Study

Exchange programs, which bring over 280,000 foreign visitors to the United States annually, are widely recognized as an effective way to expose citizens of other countries to the American people and culture. Past GAO and the Department of State (State) Office of Inspector General reviews have reported that some exchange visitors have participated in unauthorized activities and cited problems in the management and oversight of the programs. Strong management oversight is needed to ensure that the programs operate as intended and are not abused. This report examines how State manages the Summer Work Travel and the Trainee programs to ensure that only authorized activities are carried out under the programs and identifies potential risks of the programs and the data available to assess these risks.

What GAO Found

State has not exerted sufficient management oversight of the Summer Work Travel and the Trainee programs to guard against abuse of the programs and has been slow to address program deficiencies. State attempts to ensure compliance with program regulations through its processes of approving and annually reviewing the organizations that sponsor exchange visitors. These processes, however, are not sufficient to ensure that visitors participate only in authorized activities because the procedures consist primarily of document reviews, and State rarely visits the sponsors or host employers of the exchange visitors to make sure they are following the rules to investigate complaints. Moreover, some sponsors have asserted that the program regulations need updating. Further, State officials believe that the sanctions provided in the regulations are difficult to enforce. State acknowledged that it has been slow to address identified deficiencies and update the regulations, but had indicated that it is beginning to revise the regulations and is establishing a unit to monitor exchange activities. However funding of the unit has not been secured. A number of potential risks are associated with the programs, including that exchange visitors might use it to remain in the United States beyond their authorized time. There is also the potential for the Trainee Program to be misused as an employment program. Further, negative experiences for exchange participants could undermine the purpose of the programs. However, State has little data to measure whether such risks to the program are significant. As a result, State cannot determine if additional management actions are needed to mitigate the risks.