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CED-80-137 1 (1980-08-20)

handle is hein.gao/gaobabayh0001 and id is 1 raw text is: RESTRICTED - Not to be released outside the General Accounting Office except n the basis of specific approval by the Office of Congressional Relations. CoMP-ROIMR O5MMNA. OF 1W UNtIED srAT WAW4INSTOH.OxC U4 B-199908 I KAD The Honorable William Proxmire Chairman, Subcommittee on HUD-Independent Agencies Committee on Appropriations United States Senate AUGUST 20, 1980 4 Dear Mr. Chairman: Subject: 1 alysis of Community Development Block Grant Drawdown Ratest(CED-80-137) Based on your July 29, 1980, request, we reviewed the drawdown rates at which entitlement grantees are spending the Department of Housing and Urban Development's (HUD's) Community Development Block Grant funds. Specifically, we have obtained information on the following questions: What information has HUD developed on drawdown trends? What directives or procedures has HUD given its implementing offices regarding improvements in drawdown rates? Are there any Inspector General reports or other sources indicating that emphasis on faster drawdowns has contributed to inefficient spending? In summary, we found that: --There was a backlog of about $3.4 billion in unspent block grant funds for formula entitle- ment grantees as of April 30, 1980. It could take grantees a number of years to use these funds at current and anticipated drawdown rates since new funds are being appropriated each year. --HUD has taken a number of actions both internally and with grantees to promote faster spending of block grant funds. -HUD's Inspector General has identified numerous instances of improper or questionable use of block grant funds and has reported that moni- toring and evaluations of block grant-supported activities by HUD and grantees have been inadequate. S5// 90_ 113159 (384800)

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