1). 3). Labor Has Shortened Award Times, but Does Not Track the Entire Award Process

Labor’s new electronic application system and the streamlined  information requirements for national emergency grant applications have,  on average, shortened the time it takes to award grants to 25 working days  and helped Labor award 70 percent of the grants in program year 2004  within 30 working days from the submission of the application to the  issuance of the award letter. 4). Overall, Labor awarded 70 percent of all grants within 30 working days  compared with 38 percent in program years 2000-2002. In contrast, awards for regular grants took  longer. In addition, some grantees reported that  delays in obtaining funds adversely impacted their ability to provide  services, because individuals who needed employment left the affected  area to search for work in other places or found other jobs instead of  waiting for grant funds to become available. Award Processing Time Was More Consistent during Program Year 2004

Labor’s award processing times were more consistent across quarters in  program year 2004 than in program years 2000-2002. Labor Has Taken Steps to Improve Quarterly Report Data

Labor’s new electronic quarterly progress report system has enhanced its  ability to collect, review, and manage quarterly report information. By contrast, when we examined  reports submitted for program years 2000-2002, we found that the  quarterly report data were generally incomplete. Regional officials conduct a variety of monitoring activities,  including approving program operating plans, reviewing quarterly progress  reports, and conducting site visits. However, Labor has not issued  complete, program-specific guidance that would standardize monitoring  practices across regions, states, and local areas and help ensure consistent  practices. In addition, officials in most of the states and local areas we visited  said that Labor does not regularly help disseminate information about how  states and local areas are managing and monitoring their national  emergency grant projects. Moreover, while the system has improved the timeliness of  grant awards, some state and local officials have encountered problems  using the system. Appendix I: Scope and Methodology

Our objectives were to (1) determine whether Labor has shortened grant  award times since our 2004 report and has been able to meet its own goal  of 30 working days for awarding grants, (2) examine the uniformity of the  program data that Labor is currently collecting, and (3) assess Labor’s  monitoring and oversight of national emergency grant projects. Timeliness Assessment

To examine how long it takes Labor to award national emergency grants  and determine whether Labor is meeting its 30-working-day timeliness  goal, we obtained a listing from Labor of all grants awarded during  program year 2004 and the first 2 quarters of program year 2005. To assess the extent that grantees complied with requirements to summit  data to the WIASRD database, we identified states that received national  emergency grants in programs years 2002, 2003, and 2004, and, therefore,  were likely to have participants that left projects in program year 2004.
Why GAO Did This Study

Between January 2004 and December 2005, more than 30,000 mass layoffs involving 50 or more workers occurred in the United States, causing more than 3.4 million workers to lose their jobs. National emergency grants expand services to laid-off workers when other state and federal programs are insufficient to meet their needs. GAO assessed (1) whether Labor has shortened grant award times since GAO's 2004 report and was meeting own timeliness goal, (2) the uniformity of the program data that Labor now collects, and (3) Labor's oversight of national emergency grant projects. To address these objectives, GAO analyzed information for program year 2004 and the first 2 quarters of 2005 and compared it with data collected for program years 2000- 2002.

What GAO Found

We found that Labor's new electronic application system has, on average, shortened award processing time and most national emergency grants were awarded within Labor's goal of 30 working days as measured by GAO--from the time the application is submitted to the issuance of the award letter. In program year 2004, Labor averaged 25 working days to award grants, in contrast to program years 2000-2002, when it averaged 50 working days. Moreover, in program year 2004, Labor awarded 70 percent of all grants within 30 working days, in contrast to 38 percent for program years 2000- 2002. Although Labor has improved the overall timeliness for awards, award times ranged from 1 to 90 working days and varied by type of grant. For example, disaster grants were awarded, on average, in 16 days, but regular grants were awarded, on average, in 45 days. Delays in obtaining funds adversely impacted some grantees' ability to provide services. Also, we found that Labor's electronic application system and its timeliness goal did not capture every phase of the award process. In addition, users of this system reported some technical problems. Labor has taken steps to improve its two main sources of data for assessing how grant funds are used--the quarterly progress reports and the Workforce Investment Act Standardized Record Data (WIASRD) database. Labor introduced a new electronic quarterly report system in program year 2004. Since then, grantees have generally been submitting uniform and consistent information. Also, our review of available WIASRD data for program year 2004 shows that at least 92 percent of states that received national emergency grants included information on these grants in their WIASRD submissions. Labor's regional offices oversee each project to track performance and compliance with program requirements by conducting various monitoring activities, including approving program operating plans, reviewing quarterly progress reports, and conducting site visits. However, Labor has not issued complete, program-specific guidance that would standardize monitoring practices across regions, states, and local areas and help ensure consistent practices. In addition, officials in most of the states and local areas we visited said that Labor does not regularly help disseminate information about how states and local areas are managing their national emergency grant projects.