HomeMy WebLinkAboutOrdinance 11260r.
._
," f
i
ORDINANCE NO~O
AN ORDINANCE APPROPRIATING $72,585.25 TO THE GENERAL
FUND AND DECREASING THE UNRESERVED, UNDESIGNATED FUND
BALANCE BY THE SAME AMOUNT FOR THE PURPOSE OF
REIMBURSING 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.
tl
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 1992-93
and in the Budget of the City Manager, there shall also be increased appropriations in the General Fund in
the amount of $72,585.25, thereby decreasing the unreserved, undesignated Fund Balance by the
same amount, for the purpose of reimbursing the Texas Department of Commerce for disallowed
expenditures related 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 11151 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of said prior ordinances and appropriations are hereby expressly repealed.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.
uate
~~
Adopted
a~~ ~ /~~
Effective
OI'FICIAL R~CORO
CITY ~~CRfTARY
~T, WORTH, T~.
City of Fort Worth, Texas
_:~
Mayor and Council Communication
~~. ~ 02/16/93 ~ ..`. `..`~."` "VP.YLnG-10056 ~ `"" ,."~~" 08JTPAAD ~ . ~~~ 1 of 4 ___
~ SUBJECT ~ JOB TRAINING PARTNERSHIP. ACT AUDIT SETTLEMENT OF DISALLOWED COST __ ~
RECOMMENDATION:
It is recommended that the City Council authorize:
1. The adoption of this supplemental appropriation ordinance increasing appropriation
by $72,585.25 in General Fund GGO1-0080100-Employment and Training, and decreasing
the unreserved, undesignated Fund Balance of the General Fund by the same amount,
and
2. The payment of $72,585.25 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 under JTPA and a Senior Community Service Project funded by the
National Council on Aging. Program budgets for the present fiscal year total
$23,091,107.00 in federal and state grants.
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 a non-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
$18,416,850.00 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. Iri 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 1
Determination, the USDOL rejected the settlement and demanded repa m~~~~~j~di~ d
costs . ~i~y $EC~TARIf
t«~ Printed on recycled paper
4> .'
City of Fort i~orth, Texas
Mayor and Council Ccn~rtmunication
~~ 02/16/93 ^~~ `~`~~`~` °°~°`~` G-10056 ~uu nAMt PAGE
08JTPAAD 2 of 4
SUBJECT JOB TRAINING PARTNERSHIP ACT AUDIT SETTLEMENT OF DISALLOWED COST
From 1989 to date, the City's Department of Law, outside attorneys and state officials
have filed several appeals at the federal level. The status of the unresolved findings
is as follows:
Unresolved Findings/Issues Disallowed Cost Status of Resolution
(#3) Misclassification of
Administrative Cost - $385,933 00 On appeal before an
relates to the proper Administrative Law
cost category that Judge (ALJ).
On-the Job Training Contracts State and local attor-
should have been charged.
The amount i n
uestion wa Heys submit~d~briefs
'
`
q
s on 6-24~~t6
~IL
J . A
charged to a training cost final ruling has not
category; however, the been issued by the ALJ.
auditors feel that this
amount is an administrative
cost.
(#7) Program Income Earned by a $109,834.00 The U.S. Department of
non-profit contractor - The Labor (USDOL) allowed
amount in question relates to the City of Fort Worth
income earned on six (6) Fixed to submit additional
Unit Price Contracts. documentation to be
Payments made for services considered for Stand-
delivered exceeded the actual -in-Cost to offset
cost of operation this amount. The addi-
tional information
was submitted in
April 1992. To date,
a final decision has
not been issued.
(#1) Services to ineligible participants $ 5,072.00 The USDOL issued a
demand payment letter
to the Texas Department
(#2) Excessive Building Lease Expense $ 50,306.00 of Commerce on February
24, 1992 for Findings
Number 1, 2 & 5.
Y ~
+ti
~r'«1 Printed on recycled paper
,-> ~
City of Fort i~orth, Texas
Mayor and Council C'cnr~munication
uA ~ t REFERENCE NUMBER G-10056 L G NAME PAGE
02/16/93 08JTPAAD 3 of 4
SUBJECT JOB TRAINING PARTNERSHIP ACT AUDIT SETTLEMENT OF DISALLOWED COST
(#5) Misclassification of Training. Cost $ 7,738.00 This demand for
payment was passed on
to the City of Fort
Worth. The USDOL
denied a request from
the State to deduct
the total of these
amount, ($63,116.00)
from the 1992-93
appropriation.
TOTAL $ 558,883 00
The State appealed unresolved findings Number 3 and 7 and they are still under review
by a federal ALJ and USDOL officials. Findings Number 1, 2, and 5 were not appealed
and the USDOL issued a demand payment letter to the State in February of 1992. This
demand fora cash repayment of $63,116 00 plus an additional $9,469.25 in interest has
been passed on to the City of Fort Worth, for a total of $72,585.25.
During an Executive Session meeting in June of 1992 the staff briefed members of the
City Council on the status of this audit.
The JTPA law contains provisions for settlement of disallowed costs that are questioned
by auditors. While cash repayment is the preferred method of settlement, other options
include offsets (reductions) in future year fundings, in-kind or stand-in cost or
waiver of disallowed costs by the Secretary of Labor. A cash repayment is generally
demanded in the instance of "misexpenditure of funds due to willful disregard of the
requirement of the Act, gross negligence, or failure to observe accepted standards of
administration" (Section 164-(e) (1) of the JTPA law). Since none of the above
violations were cited by the auditors in their final report, a request was made to
offset/deduct the unappealed amount of $63,116.00 from future allocations. The request
was made by the Governor's Office in March of 1992 and another request was submitted
by four members of the Texas congressional delegation in July of 1992. The Secretary
of Labor denied both requests.
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.
0~~ CAE RECO4~D
CCTV S~CRT.T~RY
~T, WORTH, TEX.
-~~~ Printed on recycled paper
~' r~~f i~~t i~r~t1~, ~'eacas
~'Il~~d3" R3 ~01~3~C~~ ~'~~3Z~3ZZCt~ZI~Z
`D.ATE ~
02/.1:6/:93 ~ REf;ER-ENCf 'NUMB:E=R
G-10056 !LO NAME
:08JTPAlAI~ PAGE
4 of 4
.SUBJECT ' ,JOB TRAINING :PA'RT~1`ERSWII' ACT AUD3T SETTLEMENT Of DISALLOWED COST
FISCAL 'INFORMATION/'CERTIF:ICAT~~ON:
The D~ ~r.ector of Fiscal Sergi ces certifies tt~~at upon adoption of ':the attached
Su~~p1~ementa1 ~~pp:rop:r.atio~ ondinan.ce funds fir this ex:petldt~re ~wi]1 be available in
a the Current Operating ~B~u:dget of the :Gen.e~r~al Fund. After t~hi~s transaction the
~un.reserved, :undesigr~at~ed fund `b:alanc~e of tie ~Gener:al Fund will ;be $2'1,,808,053.00.
.LW : b
Submitted f~r~City Manager's FllND ACCUFINT CENTER
Office by: .AMDU:NT CITY SECRETARY
to
GG0.1 '. :539.120 } 000100
Libby Watson 6140 72, 585 2 pppR~VED
Or~~i~nating Department Head AA''/~{
Q~I~lif~
~
CIT
Y
3 (~
_
y~
63~v.~ ~r0liiltT~E~
ltic~hard Sapp 7530 .from i ~~B 16 1q~~
r~~?tt}0~ (~CCt,4h.~
:For Additional hnformart~on ~
~
~
Contact
.Ri c~ha~rd .Sapp ;7S3p ,
City S~fetaYy of the
' City of Fort worth, Texas
1
1
i
~~
-~~ 'Printed on recycled .paper