A state audit has uncovered some questionable bookkeeping in a state job training program. The audit examined the Department of Economic Development’s "New Jobs Training Program." It’s to provide community college job training classes for workers in businesses that are expanding in Iowa or which are opening a new operation here.
The audit, however, found bookkeeping was suspect and up to 19 percent of the businesses that got to participate in the job training program did not meet the goal of creating any new jobs. In addition, the audit found community colleges have allowed businesses to use the program to train existing workers rather than train new workers with new skills.
The state auditor is suggesting the Department of Economic Development take "a more active role" in overseeing the program. A copy of the report is available here .
The program is financed by a small portion of the payroll taxes the company pays for the workers who get the job training. Over the past five years, nearly $69-million of those sorts of withholding credits were submitted to community colleges by participating businesses.
That money would have otherwise been deposited in the state treasury.