Audits Process


  • ETP audits determine if Contractors complied with ETP Contracts, regulations, and policies

  • Information shown here briefly summarizes routine ETP Audit processes

  • Auditors will provide detailed information and guidance through an actual audit

Authority and Reference

ETP audits training costs paid from the Employment Training Fund based on:

Audit Selection

  • Contracts are selected by ETP for audit each calendar year

  • Selected Contractors are notified in advance of the audit in writing

  • Auditors work with Contractor representatives to schedule an on-site audit visit

Audit Standards, Scope, and Objectives

  • ETP audits adhere to Generally Accepted Government Audit Standards (GAGAS)

  • ETP audit processes are subject to external review every three years per GAGAS requirements. The 2020 Peer Review of the ETP Audits Unit, conducted by the Department of Finance, can be requested through a Public Records Request.

  • Audit scope is limited to compliance with ETP Contracts, regulations, and policies

  • Auditors plan and perform procedures to obtain a reasonable assurance of compliance

  • Audit objectives are to determine:
  • Trainees were eligible and met ETP training requirements
  • Training records met ETP standards and support paid training hours
  • Trainees met ETP retention requirements as specified in Contracts
  • Trainees met ETP wage requirements as specified in Contracts
  • Cash receipts reconcile with ETP disbursement records
  • ETP funding was not overlapped or duplicated by other funding
  • Administrative subcontractors were not paid over ETP cap
  • ETP trainees were not charged fees



Current Regulations

The link below will take you to a print version of the current regulations at Title 22. California Code of Regulations, as modified from the official source for printing purposes. These regulations are enacted by the Panel and revised as needed to interpret the legislation.

  • ETP Regulations (print ready) Please note: you can "save as" with this .pdf document and keep it as an electronic file and be able to use the easy search and find function.

For more detail, please visit the official source ETP Regulations on the Office of Administrative Law website.

Required Contractor Records

ETP auditors typically need to obtain and review:

  • ETP enrollment and training records maintained by the Contractor
  • Records of trainee employment during training and retention*
  • Records of post-retention wage rates*
  • Health benefits paid by employers, if required to meet ETP wage rate*
  • Accounting and business records relevant to ETP Contracts

 *For MECs, participating employers are asked to verify employment data       

Formal Notice of Audit Results

  • ETP audit reports note the performance of Contractors
  • Audit reports may include findings of non-compliance
  • Noteworthy Accomplishments of Contractors may also be included
  • Draft Audit Reports are issued if audit findings show unearned costs
  • Contractors can respond to draft reports within 15 calendar days
  • Revisions to audit findings are considered based on any response
  • Contractor Responses are included in Final Audit Reports
  • Auditors comment on Contractor Responses in Final Audit Reports
  • Final Audit Reports are issued after the draft report process
  • Invoices for repayment of unearned costs are included, if required

Audit Appeal Rights

  • Appeals of adverse audit findings can be made to ETP’s Executive Director
  • Appeals must be in writing and can include supporting documentation
  • Appeals must be made within 30 days of the receipt of the Final Audit Report
  • Full instructions for appeal are included in Final Audit Reports


  • Suitable to public interest, ETP audits are conducted from an independent, unbiased position
  • ETP Auditors seek to provide positive benefits to the public and ETP Contractors
  • ETP Auditors should provide objective feedback that may lead to improved performance
  • ETP Auditors must use professional judgment, as required by Government Audit Standards
  • The information above provides only a general overview of typical ETP audit processes
  • Audit procedures could be modified and/or expanded per Government Audit Standards

Current Peer Review

Employment Training Panel – External Peer Review