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B-164031(2) 1 (1974-05-01)

handle is hein.gao/gaobaafqz0001 and id is 1 raw text is: 9 .5 r //Oqsg The Honorable Ernest F. Hollings C United States Senate Dear Senator Hollings: This is in response to your recent request that we provide you with information concerning (i) the extent of the ai3dts by the Depa-tment of Health, Education, and Welfare (HEW) of,._thqgrants aadi a sisting- the eye/Lmt of .i i (IDls), (2) the nature and scope of our review stirted in March 1973 of such grant and contract pro- jects, and (3) examples of our findings pertaining to grantee financial management including questionable grantee expenditures and deficiencies in accounting controls and financial reporting. This request supplements your earlier request dated December 14, 1973, for an audit and report on the HEW grants awarded to the Health Maintenance Organization of South Carolina, Inc. and the Charleston Area Comprehensive Health Planning Agency. GENERAL BACIfCROIJND In his February 1971 and March 1972 health messages to the Congress, the President endorscd the concept of I1Os and proposed setting up a network of lHMOs throughout the country as an aJzLQtive t th t r ~a L~T implement his proposal, 1I04, in fiscal year 1971 began awarding grants and contracts to organizations to provide financial assistance in the planning and developmcnt of lIMOs. This grant and contract program for the development of 112-Os was carried out under various sections of the Public Health Service Act and section 1110 of the Social Security Act. The HEW grant and contract program has been principally administered by the Ilcalth 1M ,intcnince Organization Service of the Health Servicecs and Mental iHalth Adwinistr~ition. After an HEN reorganization in July 1973, the Scrvice .as ploced in the Bureau of Comminity lica Lth Services of the Health Services Adinistration located at Rorckvillc, Maryland. BEST DOCUMENT AVAILABLF ~7k)o RELEASED le- 1~o 1_ _ 77'_11' L Y th e &3 B-16403 1(2) I 0 9 9 9 q 3

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