Summary: Pursuant to a congressional request, GAO evaluated the Department of Commerce's Trade Adjustment Assistance Program, focusing on: (1) the adequacy of funding for trade adjustment assistance centers; (2) the accuracy and usefulness of Commerce's February 22, 1990 report to Congress; and (3) operational constraints during fiscal years 1989 and 1990.
GAO found that: (1) disagreement existed within Commerce over whether there was adequate funding for the 12 trade adjustment assistance centers; (2) approximately half of the reported total funds available consisted of unliquidated obligations; (3) centers inconsistently reported committed funds in quarterly budget reports; (4) Commerce's report to Congress made the centers appear to have more funds than they did, due to deletions of explanatory footnotes regarding the extent of unliquidated obligations and reserves; (5) delays in Commerce's release of 1989 and 1990 appropriated funds caused service disruptions and lowered the centers' credibility in the business community; and (6) 11 of the 12 centers had insufficient funds to last until the end of the fiscal year.
