Workforce Investment Board Fiscal Practices - 1

After looking through all the documents provided through public record, it seems wise to try to frame the information a bit.

There are actually two organizations with very similar names that Juan Manigault headed. The Northern Indiana Workforce Investment Board, Inc. (NIWIB), was a quasi-governmental body which existed up until a couple of years ago. This organization is the one we'll be looking at - primarily in the years 1999-2004.

More recently, the functions were "privatized' - one of Governor Mitch Daniels' favorite activities - and the functions were assumed by an organization called "Workforce Development Group, Inc. (WDG). Oddly, it seems most of the principals shifted from one group to the other and its not clear what the benefit(s) was/were. At any rate, it is from the WDG that Mr. Manigault recently resigned as President and CEO -- and as noted by others, with a severance package which has touched off some controversy.

My understanding is that both groups were to perform pretty much the same function. In general terms, to help those out of work or underemployed to a path of useful work with a livable wage. In terms of the NIWIB, the responsibility charged was "workforce development in St. Joseph, Elkhart, Kosciusko and Marshall counties. It issued contracts to agencies such as Workforce Development Services and Goodwill to help welfare recipients, dislocated workers, youth and others get training and jobs." (Summary courtesy of the South Bend Tribune).

On June 7, 2002 the South Bend Tribune published an article by Keith Benham entitled "Nonprofit Pays Out $228,000 to Correct Faulty Bookkeeping". Most of the cost quoted was to reconstruct financial records dating back to July of 1999. The audit and reconstruction in this case was by a company referred to as "BKD LLP of Indianapolis". On August 2, 2007 the South Bend Tribune published an article by James Wensits entitled "Manigault Clears Slate With Agency". Mr Wensits noted "Manigault produced a letter from the state Workforce Development oversight director. The letter issued in October 2004, regarded the final determination of audits covering the period from July 1999 through June 30, 2002, and concluded that 'your agency has satisfactorily addressed all of the issues identified in the audits'."

I have a copy of that letter as well, but the question we want to examine is what did it take to get to that point and what and who did it cost.

My packet of information included four audits (but not the one by BKD, curiously) and a lot of correspondence. In part 2 of this series we'll get into some particulars, but one general condition seems clear: The record keeping by NIWIB was considered poor and poor enough that it and its successor organization were required to retain an outside financial agent to satisfy the state.

Until next time.

Democracy is not a spectator sport.

Don Wheeler