Alameda County Training and Employment Board/associated Community Action Program v. Secretary Raymond Donovan, United States Department of Labor

Alameda County Training and Employment Board (“ACTEB”) petitions from a Department of Labor (“DOL” or the “Agency”) decision requiring ACTEB to pay back to the government funds which were misspent under the auspices of the Comprehensive Employment and Training Act (“CETA” or the “Act”), Pub.L. No. 93-203, 87 Stat. 839 (1973) (repealed 1978).

Pursuant to CETA, DOL issued various grants for the years 1975 through 1978 to ACTEB, a CETA prime sponsor under Titles I, II, III and VI of CETA. As a prime sponsor, ACTEB agreed to comply with all provisions of the Act, the regulations of DOL, and other applicable laws. Based on an independent accounting firm’s audit report, DOL eventually disallowed $151,235 in costs on the grounds that the money was expended contrary to the grant agreements, the Act and DOL regulations.

ACTEB requested a hearing on DOL’s determination. On June 28-29, 1982, an Administrative Law Judge (“AU”) heard the case and concluded in his decision of January 14, 1983, that $135,117.60 in costs were properly disallowed and ordered AC-TEB to repay $64,669.60 of this amount from non-CETA funds. ACTEB petitioned this court on April 18, 1983 for review of the AU’s…