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B-179278 1 (1974-02-01)

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                by the Office of Congressional Re~aons, a record of which
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                    COMPTROLLER GENERAL OF THE UNITED STATES
                             WASHINGTON, D.C. 20548


    B-179278                                      F   1  1974


    The Honorable H. R. Gross

(A  House of Representatives

    Dear Mr. Gross:

         On July 20, 1973, you requested an audit of the usof
    Fede, a,   4    0pay,,, Ihe.. alaries.of certain employees of the


         We directed our review toward determining whether the use
    of Federal funds for salary payments to members of the Gover-
    nor's staff was authorized under the various Federal programs
    involved and whether the time spent by members of the Gover-
    nor's staff on Federal program activities was commensurate
    with salary charges to the Federal grant programs. The review
    included the period from January 4, 1971, when the current
    Governor took office, through August 21, 1973, the most recent
    period for which payroll records were available at the time of
    our fieldwork. Primary emphasis was placed on those Federal
    programs in effect at the time of our review.

         The lack of detailed time allocation records was a limit-
    ing factor in the scope of our review. We did, however, ex-
    amine payroll and other financial records, personnel files,
    and grant and other program documents and interviewed selected
    State employees. We reviewed selected audit reports issued by
    the Minnesota Public Examiner, the Department of Labor, and
    the Department of Commerce. We discussed the matters in this
    report with State and Upper Great Lakes Regional Commission
    officials.

         The payroll processed through the Governor's office
    included some persons who are not on the Governor's staff but
    are paid through the Governor's office because responsibility
    for the programs is vested in the Governor's office. Our re-
    view was restricted to persons actually on the Governor's
    staff.

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