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GAO-10-648R 1 (2010-06-14)

handle is hein.gao/gaobaanti0001 and id is 1 raw text is: ~GA 0 Accountability I ntegrity Reliability United States Government Accountability Office Washington, DC 20548 June 14, 2010 Congressional Requesters Subject: Preliminary Observations on Funding, Oversight, and Investigations and Prosecutions of ACORN or Potentially Related Organizations Nonprofit organizations, such as the Association of Community Organizations for Reform Now (ACORN), play an important role in providing a wide range of public services. To provide these services, these organizations rely on funding through federal grants and contracts, among other sources. Just as it is important for federal agencies to be held accountable for the efficient and effective use of taxpayer dollars, it is also important for these nonprofit organizations to be held accountable for their use of federal funds. ACORN was established in 1970 as a grassroots organization to advocate for low- income families. By 2009, ACORN reportedly had 500,000 members and had expanded into a national network of organizations involved in the development of affordable housing, foreclosure counseling, voter registration, and political mobilization, among other things. ACORN organizations relied on membership dues and on federal and private foundation funding to support various activities. Voter registration fraud allegations in a number of states and widely distributed videotapes depicting what appeared to be inappropriate behavior by employees of several local ACORN chapters spurred calls to identify federal funding provided to ACORN and ACORN-related organizations and for legislation to restrict or eliminate funding. Congress passed provisions restricting the funding of ACORN or any of its affiliates, subsidiaries, or allied organizations in the fiscal year 2010 continuing resolutions,' which were followed by several fiscal year 2010 appropriations acts that prohibited any appropriated funds from being awarded to various ACORN or ACORN-related organizations.2 ACORN officials reported similar cuts in private foundation funding. 'Continuing Appropriations Resolution, 2010, Pub. L. No. 111-68, Div. B, § 163, 123 Stat. 2043, 2053 (2009); Further Continuing Appropriations Resolution, 2010, Pub. L. No. 111-88, Div. B, § 101, 123 Stat. 2904, 2972 (2009). 2Department of the Interior, Environment, and Related Agencies Appropriations Act, 2010, Pub. L. No. 111-88, Div. A, § 427, 123 Stat. 2904, 2962 (2009) (prohibiting funds made available under the act from being distributed to ACORN or its subsidiaries); Consolidated Appropriations Act, 2010, Div. A, § 418, 123 Stat. 3034, 3112 (2009) (prohibiting funds made available under Division A-the Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2010 -as well as prior acts, from being provided to ACORN, or any of its affiliates, subsidiaries, or allied organizations); Div. B, § 534, 123 Stat. at 3157 (prohibiting funds made available under Division B -the Commerce, Justice, Science, and Related Agencies Appropriations Act, 2010-from being distributed to ACORN or its subsidiaries); Div. E, § 511, 123 GAO-10-648R ACORN Preliminary Results

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