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Home My WebLink AboutOrdinance 11617y ._ :~ ORDINANCE NO ~~' ~Ll AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE GENERAL FUND IN THE AMOUNT OF $32,178.00 FOR THE PURPOSE OF FUNDING THE PAYMENT TO THE TEXAS DEPARTMENT OF COMMERCE FOR DISALLOWED EXPENDITURES RELATED TO THE JOB TRAINING PARTNERSHIP ACT PROGRAM, PROVIDING FOR A SEVERABILITY CLAUSE, MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES AND REPEALING ALL PRIOR ORDINANCES IN CONFLICT HEREWITH, AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS. SECTION 1 That in addition to those amounts allocated to the various City departments for the Fiscal Year 1993- 94 and in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the General Fund in the amount of $32,178.00 for the purpose of funding the payment to the Texas Department of commerce for disallowed expenditures relatE~d to the Job Training Partnership Act Program. SECTION 2. Should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall be and remain in full force and effect. SECTION 3 That this ordinance shall be cumulative of Ordinance No. 11379 and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 4. This ordinance shall take effect and be in full force and effect from and after the date of its passage, and it is so ordained. APPROVED AS TO FORM AND LEGALITY ~. ~j City Attorney U 6-30~/~ Date I~2- ~c,~ Adopted °~ /~-~~ Effective City of Fort Worth, Teas Mayor and Council Cor~cnaunication DATE REFERENCE NUMBER LOG NAME PAGE 07/12/94 G1O736 08AUDIT 1 of 3 susJECT JOB TRAINING PARTNERSHIP ACT AUDIT SETTLEMENT OF DISALLOWED COST RECOMMENDATION It is recommended that the City Council Adopt the attached appropriations ordinance increasing appropriations by 532,178 00 in General Fund Employment and Training, and decreasing the unreserved, undesignated Fund Balance of the General Furid by .the same amount, and 2~ Authorize the payment of 532,178 00 to the Texas Department of Commerce for disallowed expenditures related to the Job Training Partnership Act Program DISCUSSION The City Department of Employment and Training was created by an ordinance in August of 1984 This department is charged with the responsibility of administering programs funded under the Job Training Partnership Act, (JTPA) and other employment and training programs that are approved by the City and Private Industry Council This department is presently administering youth and adult programs to selective client groups and dislocated workers funded under JTPA and a Senior Community Service Project funded by the National Council on Aging Program budgets for the. present fiscal year total 517,533,704 00 "Funding for JTPA programs are appropriated at the national level -- the Department of Labor -- and are granted to the governor .of each state In the State of Texas, the Department of Commerce has been designated by the Governor as the agency to administer these funds JTPA programs, the same as all federal and state grant programs, are audited and monitored on a frequent basis Programs are routinely monitored and audited by the state and federal officials to ensure that they are in compliance with applicable laws and regulations On anon-routine basis, JTPA programs are selected for special or selective audits The Fort Worth JTPA program was selected in February of 1988 for a special audit by U S Department of Labor, Office of the Inspector General (OIG) A final audit report was issued by OIG on September 30, 1988 The audit covered a period of July 1, 1984 to March 31, 1988 During this period, a total of 518,4'16,850 00 in JTPA funds were awarded to the Fort Worth Service Delivery Area The final OIG audit report was issued to the State with instructions; to settle all unresolved findings with the City of Fort Worth In accordance with the State's audit resolution process, a settlement agreement between the State and Fort Worth was finalized in April 1989 The State's Final Determination (settlement agreement) was forwarded to the U S Department of Labor However, in September of 1989, in its Final Determination, the USDOL rejected the settlement and demanded repayment of disallowed costs ~~- Printed on recycled paper City of Fort Worth, Texas Mayor and Council C,ommu~aication DATE NUMBER NAME 07/12/94 G1O736 08AUDflT 2 of 3 SUBJECT JOB TRAINING PARTNERSHIP ACT AUDIT SETTLEMENT OF DISALLOWED COST From 1989 to date, the City`s Department of Law, outside consultant attorneys and state officials have filed several appeals at the federal level The status of the remaining two (2) unresolved issues are as follows Unresolved Findinas/Issues Disallowed Cost- Status of Resolution (#3) Misclassification of Administrative Cost relates to the proper cost category that On-the-Job Training Contracts should have been charged The amount in question was charged to a training cost category, however, the auditors feel that this amount i s a n administrative cost 5 385,933 00 On appeal before the Secretary of Labor and the United State Court of Appeal for the Fifth Circuit (#7) Program Income Earned by a non-profit contractor -The amount in question relates to income earned on six (6) Fixed United Price Contracts Payments made for services delivered exceeded the actual cost of operation > The U S Department of Labor (USDOL) allowed the City of Fort Worth to submit additional documentation to be considered for Stand-in- s 109,834 00 Cost to offset this amount The additional information was submitted in April 1992 With the submission of additional information for Finding #7, the City of Fort Worth was required to enter into a Partial Settlement Agreement with the Department of Labor The terms of a Partial Settlement Agreement are binding and the auditee/City of Fort Worth agree to accept the final determination of the DOL Grant Officer In this matter, the Grant Office accepted additional documentation to offset the outstanding amount of 5109,834 00 by 577,656 00 which resulted in a 532,178 00 debt In a letter dated June 6, 1994, this decision was commuriicated to the Texas State Department of Commerce On June 15, 1994, TDOC issued a demand payment letter to the City requesting repayment to settle this matter -~~ Printed on recycled paper City of Fort i~orth, Texas Mayor and Council Carrtmunication DATE 07/12/94 REFERENCE NUMBER G10736 LOG NAME 08cAUDIT PAGE 3 of 3 SUBJECT JOB TRAINING PARTNERSHIP ACT AUDIT SETTLEMENT OF DISALLOWED COST It is important to know that the nature of these findings concern how certain costs were classified There is no concern related to the amount or quality of service provided nor is their any issue of malfeasance It is the opinion of staff that all available options to settle this matter have been exhausted Therefore, to bring this issue to closure, it is recommended that the City Council authorize repayment of the disallowed cost FISCAL INFORMATION/CERTIFICATION The Director of Fiscal Services certifies that upon adoption of the attached supplemental appropriation ordinance, funds for this expenditure will be available in the current operating budget of the General Fund After this transaction the unreserved, undesignated fund' balance of the General Fund will be 524,81 1,000 LW I Submitted for City Manager's F[JND ACCOUNT CENTER AMOUN7i CITY SECRETARY ,Office by: (to) (1) GGOI 539120 0080100 $32,178.00 A Libby Watson 6140 ~ ~® ~~'V~o Originating Department Head: tt l ' ~8~~ ~®UNCI~ Richard Sapp 5310 (from) o~LS~ ~~ 1~'~A (2) GGO1 539120 0080100 $32,178.00 „ For Additional Information ~ ~~~J ~•,~ f th ~ t Cit Contact: eeose a~ry o e q C`iltjt' og Fost Worth, Texas Richard Sapp 5310 i-~~ Printed on recycled paper