Pierce County v. United States, by and Through the Department of Labor, and Raymond Donovan, Its Secretary of Labor, Etc.

In this consolidated appeal, Pierce County seeks review of the adoption by the Secretary of Labor (hereinafter the Secretary) of the decision of the Administrative Law Judge (hereinafter the AU) to affirm in part two final determinations of the local grant officer requiring Pierce County’s repayment of funds expended under the Comprehensive Employment and Training Act of 1973 (hereinafter CETA) as amended by Public Law 95-524, 92 Stat. 1909 (1978).

I

The issue before us is whether the Secretary’s failure to make a final determination 120 days after receipt of an audit alleging violations by a CETA fund recipient deprives him of the authority to act on the allegation. We reverse because we conclude that the Secretary must make a final determination within 120 days of receiving an audit alleging violations of CETA. Since the Secretary lacked the authority to make a final determination after 1-20 days from the date of the filing of the audit, we do not reach the merits of Pierce County’s contentions.

II

PROCEDURAL BACKGROUND

In Case No. 81-CETA-A-88, the Department of Labor Office of Special Investigations (OSI) filed an audit on September 19, 1978, concerning the rehiring of…