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DOCUIENT RESUME
05385 - [B0905843) (-4_ RfL CAuD
[Misuse of Federal Mass Transit Funds by a Federal Employee].
CED-78-78; a-169491. March 30, 1978. 13 pp.
Report to Rep. John L. Burton, Chairman, House Committee on
uovernment Operations: Government Activities and Transportation
Subcommittee; by Elmer B. Staats. Comptroller General.
Issue Area: Law Enforcement and Crime Prevention: vhite-Coliar
Crime (509); Accounting and Financial Reporting (2800);
Transportation Systems and Policies: Urban Public Transit
Systems (2411).
Contact: Community and Economic aevelopment Div.
Budget Function: Law Enforcement and Justice: Fedezal Law
Enforcement and Prosecution (751); Commerce and
Transportation: Ground Transportation (404); Miscellaneous:
Financial Management and Inforation Systems (1002).
Organization Concerned: Department of Transportation; Department
of Justice; Departmept of the Treasury; Urban Mass
Transportation Administration.
Congressional Relevance: House Committee cn Governme t
Operations: Government Activities and Transpcrtation
Subcommittee. Pep. John L. Burton.
Authority: Urban Bass Transportation Act of 1964, as amended (49
U.S.C. 1601). Housing Act of 1950 (12 U.S.C. 1749).
Government Corporation Control Act (31 U.S.C. 841).
ALcounting and Auditing hct of 1950 (31 b.S C. 66). General
Accounting Office Act of 1974. P.L. 93-604. 31 U.S.C. 65.
The arbo.n mass Transportation Administration's (OSTAes)
accounting, auditing, and administrative con-rols were reviewed
because of the diversion of Federal funds by an employee. The
review also involved the approval of UNTA's accounting system
and UMA's hiring practices. During 1977, a Federal employee
diverted more than $856,000 of Federal mass transportation funds
1)y placing his name on official payment vouchers authorizing the
U.S. Treasury to issue checks. Inadequate review of the vouchers
at the time of certification and the employeels access to all
pertinent documents directly contributed to the diversion of
funds. Iu adetion, the employee was permitted tc work
unscheduled and unsupevviEed hours; he was authorized to act as
a special messenger fcc the accounting division; and he was
assigned continuous responsibility for the same grant projects.
The employee pleaded guilty to one count each of mail fraud and
forgery and was sentenced to 6 years in prison. Cash and other
assets acquired with the visused funds were recovered. UNTA is
not considered an executive agency under 31 U.S.C. 65a and is
excepted from accounting systems approval by GAO. The Department
of Transportation has acted in accordance with requirements by
the Civil Service Commission for the hiring of rehabilitated
offenders and in pr:omoting such employees. (RBS)](ViewImageLocal?handle=hein.gao/gaobaawxa0001&div=1&collection=&method=preview&ext=.png&size=3)