Broadband grants largely met goals we reviewed, but a lack of clear goals for certain workforce programs made it difficult to determine whether those programs were successful. Additionally, DEED did not comply with some state grant oversight and reporting requirements.
Statutes require DEED to report on certain performance metrics for the workforce grants we reviewed and to analyze the impact of certain workforce programs. Statutes also direct DEED to award broadband grants to support the development of broadband infrastructure in areas currently lacking adequate broadband service.
DEED reports performance metrics for its workforce programs. However, without performance goals, the metrics that state law requires DEED to report for its workforce programs are not useful for measuring program success. (p. 18)
Recommendation ► The Legislature should direct DEED to build on the required performance metrics to establish meaningful and measurable performance goals for the workforce grant programs we reviewed. (p. 18)
Recommendation ► DEED should use program data to establish measurable performance goals for these programs. (p. 18)
DEED has not complied with the statutory requirement to analyze the impact of its workforce programs. (pp. 19-20)
Recommendation ► DEED should complete the workforce program net impact analysis report as required by law. (p. 20)DEED is responsible for supporting its grantees and for ensuring that they provide grant services as intended. OGM policies require DEED to monitor the work of its grantees and to evaluate grantee performance.
For the grants we reviewed:
DEED’s policies and procedures lack key details to support compliance with OGM requirements. (pp. 38-39)
Recommendation ► DEED should update its: (1) agencywide policies and procedures to incorporate each of OGM’s requirements, and (2) division specific procedures to describe how program staff must oversee grants to ensure compliance with OGM requirements. (pp. 39-40)
Recommendation ► DEED should ensure its program staff comply with all OGM requirements. (p. 40)
In a letter dated March 17, 2025, DEED Commissioner Matt Varilek wrote that DEED “appreciated the recommendations included in this report for improving DEED’s grant oversight and program reporting requirements.” He stated that “DEED is committed to collaborating on statutory changes” to “include more specific and measurable performance goals for workforce grants.” Commissioner Varilek also noted that DEED agrees with OLA’s findings and recommendations related to DEED’s grants oversight. He said, however, that “DEED was confronted with unprecedented challenges in administering grant programs” during the COVID-19 pandemic, including “significant increases in work volume.” The commissioner said that, since the timeframe reflected in the report, DEED has increased staff to perform monitoring duties and implemented a process to withhold payments for grantees with past due progress reports. He indicated that DEED is currently reviewing and updating all grants policies to ensure compliance with legal requirements and best practices.
