Audit of the Department of Labor Standards - Division of Apprentice Standards
August 15, 2019 · Department of Labor Standards—Division of Apprentice Standards · Read the full official report on mass.gov ↗
source
“In this performance audit, we examined DAS’s administration of its apprentice program.”
Read the plain-English breakdown
This is a Massachusetts State Auditor performance audit of the Department of Labor Standards’ Division of Apprentice Standards, covering July 1, 2015 through December 31, 2017.
“This report details the audit objectives, scope, methodology, findings, and recommendations for the audit period, July 1, 2015 through December 31, 2017.”
Auditors checked whether DAS was properly overseeing registered apprenticeship programs and whether apprentice agreements included required terms and information.
“Below is a list of our audit objectives, indicating each question we intended our audit to answer, the conclusion we reached regarding each objective, and where each objective is discussed in the audit findings.”
If DAS does not check apprenticeship programs, apprentices may not get the training they need to succeed in their jobs.
“As a result, there is inadequate assurance that people participating in apprentice programs are receiving the training they need in order to compete successfully for employment in their fields of study.”
For an ordinary worker or apprentice, this matters because the state is supposed to make sure apprenticeship programs provide proper training, follow equal-opportunity rules, and give apprentices clear agreements about wages, hours, rights, and complaint options.
“If apprentices are not fully informed of all program requirements and of their right to obtain proper training, they might not receive the full benefits and training to which they are entitled.”
The audit’s bottom line is that DAS did not meet several oversight responsibilities during the audit period.
“DAS did not properly administer apprentice agreements.”
The report recommended that DAS perform required reviews, improve policies and procedures, make sure staff have the right forms and training, and update apprentice agreements. DAS said it was taking steps to address these issues.
“DAS will review, update, and/or develop and implement written policies regarding all aspects of Quality Assurance Assessments by 12/31/2019.”
DAS means the Division of Apprentice Standards. A QAA is a quality check of an apprenticeship program. AAP means affirmative action program, and EEO means equal employment opportunity.
“DAS employs seven staff members to administer the state’s apprentice program: a deputy director, two project coordinators, two compliance officers, one office support specialist, and one administrative assistant.”
What the Auditor checked
- Did not comply Did DAS conduct performance evaluations of registered apprentice programs as required by Sections 29 and 30 of Title 29 of the Code of Federal Regulations (CFR) and Section 26 of Title 454 of the Code of Massachusetts Regulations (CMR)?
- Did not comply Do DAS apprentice agreements contain all required terms, conditions, and other information in accordance with state standards?
What the Auditor found
Why it matters: There was inadequate assurance that apprentices received the training they needed to compete successfully for employment in their fields.
Standard: Section 26.03(4) of Title 454 of the Code of Massachusetts Regulations and the US Department of Labor’s Office of Apprenticeship Circular 2013-01. ( Section 26.03(4) of Title 454 of the Code of Massachusetts Regulations; US Department of Labor’s Office of Apprenticeship Circular 2013-01 )
4 recommendations
- DAS should conduct QAAs, using the “Apprenticeship Program Quality Assurance Assessment” form, after the first year of a sponsor’s apprentice program and at least once every five years thereafter.agency: agreed
- DAS personnel responsible for conducting the QAAs should have the proper policies, procedures, and forms to complete them.agency: agreed
- DAS management should identify existing financial resources that could be allocated to enable DAS to increase its number of compliance officers in order to conduct all required QAAs and, if necessary, should request additional funding from the Legislature for this purpose.agency: agreed
- DAS should develop and implement written policies and procedures to schedule, conduct, and monitor the performance of QAAs.agency: agreed
Agency response & Auditor reply
Agency: "DAS’s current practices include performing quality assurance assessments."
Why it matters: DAS could not be certain that sponsors were preventing discrimination and ensuring equal opportunities for apprentices.
Standard: 454 CMR 26.07(3), 29 CFR 30.13(a), and DAS’s own review practices. ( 454 CMR 26.07(3); Section 30.13(a) of Title 29 of the Code of Federal Regulations )
3 recommendations
- DAS should conduct affirmative action plan reviews every five years, and EEO compliance reviews annually, to ensure that sponsors are meeting the goals established in their affirmative action plans.agency: agreed
- DAS should assess what additional resources, if any, it needs to perform its affirmative action plan reviews and EEO compliance reviews in accordance with applicable requirements and should seek to obtain these resources.
- DAS should develop and implement written policies and procedures regarding conducting AAP and EEO reviews, as well as monitoring controls to ensure that these policies and procedures are adhered to.agency: agreed
Agency response & Auditor reply
Agency: "Current DAS practice includes use of EEO Maintenance Review Forms for monitoring the progress sponsors make with respect to the hiring goals in their affirmative action plans."
Why it matters: Apprentices might not receive the full benefits and training to which they are entitled if they are not fully informed of program requirements and rights.
Standard: Section 26.06(4) of Title 454 of the Code of Massachusetts Regulations. ( 454 CMR 26.06(4); Sections 11E through 11L of Chapter 23 of the Massachusetts General Laws and 454 CMR 26 )
2 recommendations
- DAS should develop a new apprentice agreement to include all requirements described in 454 CMR 26.06(4).agency: agreed
- DAS management should develop monitoring controls to ensure that all regulatory requirements are included on the apprentice agreements and that program applicants and sponsors submit all required information.agency: already implemented
Agency response & Auditor reply
Agency: "Since the period covered by the audit, DAS has developed two new apprentice agreements, one for the building trades and one for so-called expansion industries."
Auditor: "Based on its response, DAS is taking measures to address our concerns regarding this matter."
More audits of this entity
Other Office of the State Auditor reports on Department of Labor Standards—Division of Apprentice Standards .