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Wisconsin Department of Workforce Development News Release
Thursday, April 7, 2005 Governor Jim Doyle Secretary Roberta Gassman	News Media Contact Rose Lynch   608/266-6753 e-mail: news@dwd.state.wi.us fax: 608/266-1784

 

Department Of Workforce Development Comments on Legislative Audit Bureau’s Audit of Wisconsin Works (W-2)

DWD already taking steps to address LAB’s findings

Madison – Wisconsin Department of Workforce Development (DWD) Secretary Roberta Gassman today commented on the Legislative Audit Bureau’s (LAB) new evaluation of the Wisconsin Works
(W-2) program.

“We take most seriously our responsibility for administering W-2 and the Audit Bureau’s findings will help us strengthen this important program,” said Gassman. “DWD appreciates the recommendations included in the report, which we have already begun implementing along with the many other aggressive steps we have been taking since 2003 to strengthen the operation and management of
W-2,” added Gassman.

DWD fully supports the goal of W-2 to assist low-income families in achieving economic self-sufficiency through employment. W-2, however, is not the sole vehicle for moving families out of poverty. With ultimate self-sufficiency as the goal, W-2 is a key step in a continuum of workforce development programs and services that must help families become self-sufficient. DWD’s goal is to support this continuum while best serving customers and protecting public resources.

DWD appreciates that LAB’s audit noted improvements in the oversight of W-2 by DWD during the past two years.

DWD has already taken the following actions which address the recommendations included in the report:

• Assignment of work hours to W-2 participants – In 2004, DWD issued a series of memos providing guidance to W-2 agencies on appropriate assignment of activities for Community Service Jobs (CSJ) participants;
• Appropriate payments to W-2 participants – In 2004, DWD initiated changes in the way W-2 placements are recorded and tracked to simplify case processing, eliminate erroneous payments and strengthen staff training;
• Screening participants for potential barriers – In 2003, DWD updated its policies on barrier screening and assessment and implemented a new Barrier Screening Tool (BST); W-2 agencies are now required to offer the BST to W-2 participants within 30 days after initial placement in the program;
• Consistent application of program sanctions – In 2003 and through 2004, DWD sponsored an extensive study of the application of sanctions by W-2 agencies. The Sanction Study Steering Committee included representatives of W-2 agencies, advocacy groups, DWD staff and a national scholar with expertise in this area; the Steering Committee’s final report was completed in 2004 and contains 19 priority recommendations for ensuring more equitable treatment of W-2 participants in the application of sanctions by the W-2 agencies. DWD supports these recommendations which are now being implemented by DWD; and,
• Financial monitoring – Over the last two years, DWD has strengthened its financial oversight
  of W-2:

1. DWD currently contracts with independent accounting firms to conduct on-site financial review audits of all Milwaukee W-2 agencies, as well as many of the larger W-2 providers in the balance of the state;
2. DWD regional monitoring staff review individual W-2 agency expenditure reports on a monthly basis and meet with the management of W-2 agencies to reconcile all questionable billing or cost allocation practices;
3. DWD central audit staff office review all single agency audits that all W-2 agencies are required to submit, and if discrepancies or questionable practices are found, DWD staff reconcile these findings with the W-2 agencies; and,
4. DWD has required a former W-2 agency to hire a different audit firm to conduct its annual single agency audit in order to obtain an independent review of that W-2 agency’s financial status.

In future W-2 contracts, DWD will emphasize strengthened participant connections to work and career ladders; providing employment stabilization services; and, for those individuals with multiple and severe barriers, providing assistance in obtaining Supplemental Security Income and Social Security Disability Income. Implementing the Trial Jobs Plus initiative, increasing the minimum wage and improving service integration will support the success of participants in the W-2 program.

“W-2 must be viewed as one program within the broader public workforce system that often supports individuals in making their initial connection to employment”, said Gassman. “Once unsubsidized employment is obtained, connections to other workforce programs such as those provided under the Workforce Investment Act and through the technical colleges will allow individuals to continue to move up career ladders and closer to the goal of achieving economic self-sufficiency,” added Gassman.

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Content Contact: Rose Lynch