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HRD-77-10 1 (1977-02-11)

handle is hein.gao/gaobaaccg0001 and id is 1 raw text is: 












  -; W              UN'TED STATES GENL_?AL ACCOUNTING OFFICE
  Co                       WASHiNG1 ON, D.C. 05                  LM101742


~IUMAN RESOURCE-S
    DIVISION
    B-164031(3)                                    FEB 11 1977



    The Honorable
    The Secretary of Health, Education,
        and Welfare

     Dear Mr. Secretary:

           In a letter dated Decembe.r 29, 1975, Congressman Edward G.
     Biester, Jr., informed us of a Pennsylvania State senator's
     concern about possible misuse of Federal funds by local county
     boards of assistance of Pennsylvania's department of public wel-
     fare. The Congressman indicated that the Federal Government
     reimbursed Pennsylvania for social service positions eat a rate
     of 75 percent, although some of the positions may have been oc-
     cupied by employees performing income maintenance functions
     which should be reimbursed at a 50-percent rate. The Congress-
     man stated that the same situation may be occurring with Work
     Incentive (WIN) program positions which are reimbursed at a
     90-percent rate, and he asked for our assistance in answering
     the following questions:

           1. How many pusitions have been funded in the Comtmonwealth
              of Pennsylvania and at what reimbu.sement rate?

           2. What limitations and/or guidelines are established for
              theqe positions?

           3. How would the misuse of funds be dctermined?

           4. What is the penalty for misusing such funds?

           In response to the Congressman's letter, we interviewed
      Federal and State agency personnel and reviewed State agency
      procedures for recording costs and preparing claims for Federal
      reimbursement. Because of the complex cost allocation proce-
      dures, we did not make a detailed audit of costF, claimed for
      Federal reimbursement. We interviewed State agency personnel
      responsible for program and fiscal manayczment and administra-
      tion personnel in the department of public welfare at Harris-
      burg. In addition, we reviewed cost allocation plans, por-
      tinent Federal. and State regulations, and related accounting

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