Review questions $1.1M
David Suski
The exterior of Washington-Greene County Job Training Agency in Washington
A state Department of Labor & Industry fiscal review of the Washington-Greene County Job Training Agency is questioning $1.13 million in expenditures over the past four years of its operations.
According to a letter and supporting documentation made public Friday, L&I is questioning nearly $1 million in cost allocations, including the methods by which former and current WGCJTA executives and some staffers allocated their salaries and time across various funding streams; personal use of an agency-leased vehicle by former WGCJTA President David Suski; failure to provide timely disclosure of a conflict of interest because of some printing costs charged to a third-party company owned by Suski and then-Vice President Linda Bell; and additional leasing costs incurred from duplication of some services.
Suski abruptly left his position in June, and Bell succeeded him as president of the agency.
Washington County Commission Chairman Larry Maggi stressed Thursday the nonprofit WGCJTA is not a part of Washington County government operations.
“The three counties have a contract with them to provide services,” Maggi said, adding the county doesn’t control hiring or firing or other operations at the agency.
Bell said in a statement Friday WGCJTA believes some of the findings can be resolved by providing additional information to demonstrate its activities were in conformance with applicable standards “while other findings are a result of a different interpretation of applicable regulations.”
WGCJTA is the fiscal agent for the Southwest Corner Workforce Investment Board, funneling state, federal and local grant money for various job programs. The WIB reports to a nine-member panel of county commissioners termed Chief Local Elected Officials or CLEO, from the three participating counties.
WGCJTA helps residents at all income levels in Washington, Greene and Beaver counties through a variety of programs, including those re-entering the workforce, veterans, those who recently lost a job as well as others who are starting their own businesses.
The L&I review asks for a response and supporting documentation within 30 days of the Jan. 16 letter.
According to the letter, L&I reviewed fiscal statements, payroll transactions and other financial and program elements as they related the federal Workforce Investment Act of 1998, and provisions under the grant agreement between L&I and WGCJTA..
In the eight-page supporting document provided by L&I, the department questions $981,200 in costs it said were allocated as expenses to various WGCJTA programs it said were “not based on relative benefit to the funding streams overseen by the Southwest Corner workforce Investment Board.”
The review found through payroll-related documents that several WGCJTA employees’ time allocations shifted arbitrarily.
It noted in program year 2010, 76 percent of Suski’s salary was charged against WIA grants, with 26 percent charged as administrative and 50 percent charged as programmatic. In 2011, 99 percent of Suski’s time was charged against the WIA grants, with 9 percent charged to administrative and 90 percent to programming, a pattern that continued in program years 2012 and 2013. “Mr. Suski is not the WIB director and had no direct role in WIB efforts or WIA service delivery activities, other than serving as a volunteer board member on the WIB,” the report states, adding that Suski’s time should have mostly billed to administrative functions, “as well as outside activities such as the Work Certified Academy.”
The same discrepancy was noted in the salary allocations of Bell and other staff members during the time period.
The report states that the Workforce Investment Act “prohibits WIB staff from providing services; therefore, a majority of their time is to be at a higher, strategic level within area” noting that the majority of the WIB director’s time should fall under the administrative cost category.
“Finally, it is necessary for the SWC WIB to right-size its WIB operations,” the report states. It notes that the Employment and Advancement Retention Network program is being moved to a PA CareerLink office, creating underused space at WGCJTA offices, which will require the agency to reduce its office space or renegotiate its lease
The report also calls for downsizing in Beaver County, where Job Training for Beaver County is the provider for adult and youth services but has a separate office from the local PA CareerLink office with which it provides services. The report calls for SWC WIB to reduce costs by consolidating the two offices.
As for WGCJTA’s donation account ledger, the review found a commingling of non-grant and grant funding, which it noted causes increased risk of errors that could result in noncompliance with grant requirements. The review calls of WGCJTA to reconcile transactions over the last three years and compile supporting documentation.
The review also found that WGCJTA was providing Suski with a vehicle for personal use and paid the lease costs and maintenance expenses, which were reimbursed under the WIA and other federal and state funding sources.
It noted that costs of goods or services for personal use of the organization’s employees are not allowable. It said the issue was resolved when WGCJTA submitted a refund check for $27,868 in May.
The fiscal review report also questioned $11,662 in WGCJTA’s legal costs. It noted prior to August 2012, the agency paid legal fees, including a retainer, of about $500 per month. L&I said that when it began its review, it observed a considerable increase in legal fees, “which appears to be a direct correlation in responding to and/or defending against claims made by L&I.”
Under the topic of “additional concerns and corrective actions,” the review examined third-party relationships that appeared to present a conflict of interest. “Particularly, the president and vice president of the WGCJTA were joint owners in a separate business that received a financial interest from their direct roles in WGCJTA.”
According to the report, the agency would approve participant referrals to a Work Certified Academy and once completed, the academy would issue participants a card certificate. The certificates were printed by the company owned by Suski and Bell.
“While this information was eventually disclosed, it was not done so in a timely fashion,” the report states. It asks that the workforce investment board and WGCJTA “must perform a thorough review to ensure all matters related to conflicts of interest are fully disclosed and vetted.”
Bell said in Friday’s WGCJTA press release that the staff had prior approval of the corporate board and its attorney “to operate a separate business and did not print cards for programs or participants in Beaver, Washington or Greene counties.”
Suski, who was contacted by the Observer-Reporter Friday afternoon, confirmed Bell’s statement, adding that their company never did business in any of the three particiapting counties.
“WGCJTA takes every one of the findings seriously, and pledges to work closely with the county commissioners and (the Department of Labor & Industy) to address all of the findings and to implement all appropriate corrective measures,” Bell stated. She said the agency had already implemented many of the key recommendations made by L&I.
Suski said that the agency, which has operated for 30 years and consistently achieved its benchmarks, “had never had a question” about its operations until L&I informed it that it was conducting the audit.
Suski, who said he reported the use of the agency car on his income taxes, said he did not resign from the board, but was terminated by it because of funding issues.
Stating that he is “bewildered” by the events of the past year, Suski said he bears no animosity toward anyone.
“I have nothing against the state, they’re just doing their jobs. I don’t want to say we made a mistake, but if we made a mistake, it was because of changing regulations.”
The workforce board holds its regular monthly meeting Tuesday at the Hilton Garden Inn, Southpointe.
Will White, a Butler County attorney with experience in helping the Northwest Corner WIB turn its operations around, was hired as solicitor for the SW WIB’s CLEO in October. He said Friday that while some issues in the L&I fiscal review have been addressed, it will take some time for a complete resolution.
“The commissioners want to fix this problem immediately, but it is not going to be a quick fix,” White said, adding that it will probably take “a couple of months, at least.”