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RED-75-355 1 (1975-04-24)

handle is hein.gao/gaobaaath0001 and id is 1 raw text is: ,J~3 [. -17 50 COMPTROLLER GENERAL OF THE UNITED STATES -7 WASmINGTON. D.C. 20548 0qsoIq B-171500 APR 2 4 1975 The Honorable Charles W. Whalen, Jr. House of Representatives Dear Mr. Whalen: On October 2, 1974, you requested us to review certain allegations concerning the Model Cities Planning Council in )12 Dayton, Ohio. The specific areas of concern involved --possible violations of the Department of Housing and Urban Development's conflict-of-interest guidelines and --questionable payments made to Planning Council members and staff. On the basis of the information we obtained we cannot conclude that the Department's conflict-of-interest guidelines were violated. We found that the charges concerning question- able payments to Planning Council members and staff were generally true and that the Department and Dayton had not exercised adequate fiscal control over these payments. We made our review at Department headquarters, Washington, D.C.; the Department's area office in Columbus, Ohio; and at the City Demonstration Agency, Model Cities Planning Council, and other agencies involved in the Model Cities Program in Dayton. We reviewed Department guidelines and city contract provisions pertaining to conflict of interest, documentation related to the questionable payments to Planning Council members and staff, and discussed these matters with Department and city officials and the five individuals named in this report. BACKGROUND The Model Cities Program was established by title I of the Demonstration Cities and Metropolitan Development Act of 1966 (42 U.S.C. 3301). The local Model Cities Program consisted of (1) a 5-year comprehensive demonstration plan describing the city's needs in terms of projects required to make a noticeable impact on social, economic, and physical problems and (2) annual action plans which outlined projects j 5IRED-75-355

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