Affiliation of Arizona Indian Centers, Inc. v. The United States Department of Labor

The Affiliation of Arizona Centers, Inc. (“AAIC”) petitions for review of a Department of Labor (DOL) determination that it misused $14,551.00 in CETA grant funds, and the order that the amount be repaid from non-CETA funds.

FACTS AND PROCEEDINGS BELOW

On October 1, 1976 the DOL awarded a grant to AAIC to develop and administer an employment and training (“CETA”) program for Indians. The grant, in the amount of $103,378, was to run through September 30,1977. This was later supplemented by an award of $137,522, and the grant period was extended through September 30, 1978.

AAIC also administered an ACTION program. Like CETA, ACTION programs are designed to help the poor and disadvantaged. It was funded by an ACTION grant of $16,266.00. The ACTION and CETA programs operated out of different offices in the same building.

An audit of the CETA program expenditures was made for the period October 1, 1976 to September 30, 1977. DOL disallowed costs totaling $61,531. AAIC requested a hearing before an Administrative Law Judge (“AU”) to challenge the disal-lowance.

The ALJ found three separate disallow-ances totaling $14,551. The first disallowance of $8,879 was for expenditures…