Board discusses job agency audit
The solicitor for the board of county commissioners that oversees the Southwest Corner Workforce Investment Board said Tuesday the current regime change in Harrisburg is slowing down the process of resolving questions in a state review of a nonprofit job training agency’s allocation of salaries.
In January, in an eight-page letter, the state Department of Labor & Industry released preliminary findings questioning $1.13 million in spending during the past four years of the Washington-Greene County Job Training Agency, which also is the fiscal agent for Southwest Corner Investment Board.
The bulk of the amount in question focused on $981,200 in costs L&I said were allocated for executive salaries and expensed to various WGCJTA programs it said were “not based on relative benefit to the funding streams overseen by the Southwest Corner Investment Board.”
The review found the amount in question was primarily used to cover salaries for former director David Suski, who left the agency in June, and current director Linda Bell, as well as for some portions of salaries of other WGCJTA staffers. The agency uses federal, state and local funds to provide a number of job programs for residents in Washington, Greene and Beaver counties.
On Tuesday, Will White, solicitor to the nine-member board of county commissioners termed Chief Local Elected Officials, or CLEO, from the three participating counties, said changes at L&I as a result of new Gov. Tom Wolf “bogged down” the process of resolving the questions raised by L&I.
White spoke to members of the Southwest Corner WIB at the Hilton Garden Inn. The WIB did not have a quorum, so the meeting was considered informational.
“It’s not going to be a short-term fix. It’s going to be a long-term process,” White said, explaining that L&I’s counsel, with whom he meets, is being replaced.
He added it is not clear whether Michelle Stanton, who is L&I’s deputy secretary for workforce development, will remain with the department.
Despite the changes, White noted WGCJTA Chief Financial Officer Ami Gatts responded to L&I’s questions with 85 pages of “data, materials and attachments” to support agency’s rationale for the way it appropriated the money in question.
White said he expects L&I will respond to the agency’s documentation within the next 30 days.
He also told WIB board members the agency’s delivery of services throughout the three counties has been above average and not in question by L&I.
He said the smooth delivery of services probably meant the CLEO felt everything was running well. He added it will be necessary in the future to ensure the CLEO maintains strong oversight of the WIB.
“There’s an oversight issue, and there’s a paper trail issue,” he said.
The amount of money that may have to be paid back remains unknown, White said, adding he expects there will be “a lot of back-and-forth” before an amount is determined.
Whatever the amount, which could be significantly reduced if the department accepts the agency’s documentation, the final tally will be the responsibility of the CLEO, White said. If L&I requires money to be returned, White said the CLEO has three options; it could work out a formula to return the money, negotiate for a lump sum payment or withhold funds from administration in order to pay the final amount.
He stressed no services would be curtailed.
Greene County Commissioner Blair Zimmerman told WIB members the CLEO is taking the information from L&I “very seriously. The CLEO is looking at all of our options.”
Washington County Commissioner Harlan Shober said the CLEO will work with the WIB board to arrive at a solution.
“We’re going to make it right together,” said, “but I still have more questions than I have answers.”