The Government Accounting Office (GAO) conducted an examination of patterns and causes of fraud in Comprehensive Employment and Training Act (CETA) programs to determine how implementation of Job Training Partnership Act (JTPA) programs might be made less vulnerable to exploitation. GAO's investigation found that fraud and abuse in CETA programs often occurred because of weaknesses in internal controls, particularly in accounting and reporting at the service delivery level. JTPA's programs are similar to CETA's in that most funds are spent by locally-based program delivery systems; thus, strong internal controls at service delivery level are needed. A Department of Labor Inspector General (IG) audit of State system designs prior to JTPA implementation revealed numerous weaknesses in the procedures the States planned to use to ensure the adequacy of controls of service delivery area subgrantees. The IG recommended that Labor's Employment Training Administration (ETA) review all the States during the first few months of JTPA operations to determine whether planned procedures and controls were adequately completed and all necessary systems were implemented and working effectively. ETA's follow-up determined that nearly all critical State systems have been developed. As the Department of Labor monitors JTPA in the future, it should verify that the procedures have been fully implemented and work effectively. (CMG)