Councilmember Marion Barry provides comment on the 2008 Summer Youth Employment Public Oversight Hearing
dt.: September 18, 2008

Washington, DC— Ward 8 Councilmember Marion Barry provided comment in responds to the testimony heard earlier today by Charles J. Willoughby, Inspector General, for the District of Columbia and other DOES officials in the public oversight hearing on the 2008 Summer Youth Employment Program.

“The program mismanagement for financial responsibility in relation to the 2008 SYEP is far more widespread and massive than we originally interpreted,” said Barry. “From what we heard today we were able to gather that millions of dollars have been severely mismanaged according to the inspector general’s report. This is extremely unacceptable and the Mayor should take it upon himself to apologize directly to the citizens of the District of Columbia for allowing such gross negligence to take place. He should also immediate introduce a plan of action to the Council that will address these issues. ”

According to facts taken directly from the testimony of Mr. Willoughby, Inspector General, of the District of Colombia several flaws were found in the implementation of the Department of Employment Services SYEP for 2008. Most of the problems centered around the establishment of a new data system implemented two weeks prior to the start of the program by the former DOES director. DOES was unable to accomplish tasks and plans assigned resources consistently with defined needs. DOES lost control of the program, consequently mass confusion occurred.

It appeared that 49 of the estimated $52 million dollars allocated for the FY 2008 Summer Youth Employment Program had been spent. So Far $39 million($29 million in salaries and $10 million in contracts) has been accounted for. The remaining $10 million dollars is still being searched for. Planning for the FY 2008 Summer Youth Employment Program appears to have been haphazard and ad-hoc.

The IG found that the DOES system created weaknesses that led to the following program deficiencies:

• DOES staff could not detect ineligible summer youth employment program participant

• Participants who were properly registered in the program and worked did not get paid

• Some program participant received pay and did not work

• DOES sent too many program participants to some host sites increasing the contract cost beyond contractual limits

• DOES had no means for providing useful summer youth program progress reports to the Mayor, the Council and others.

• OCP/DOES did not make timely contract awards, with most of the 36 contracts awarded between June 10, 2008, and June 18, 2008

• Sole-Source contracts awards were made without proper justification

• DOES and the District of Columbia Schools allowed contractors to use school buildings without paying rent or associated costs

• Cost for Summer Youth Employment Program participants paid to contractors appear to be EXORBITANT, ranging as high as $6,600 per participant (for 10 weeks) in one instance

• DOES did not require all private employers to complete and sign formal agreements

Problems with the Debit Card/Payment Process

• DOES has no written policies or procedures for the debit card operation

• DOES did not require SYEP participants to pay bank fees($17.50 per card replaced) when they lost their debit cards

• SYEP participants who worked for private employers possibly received duplicate payments

• There was a likelihood that undistributed debit cards were misappropriated

• DOES incurred unnecessary bank fees