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HRD-80-68 1 (1980-03-10)

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United States General Accounting Office
Washington, DC 20548


B-197985


Human Resources
Division


RELEASED


March 10. 1980


The Honorable Jim Sasser-
The Honorable Howard H. Baker, Jr.
United States Senate


The Honorable Frank Horton
The Honorable James H. Quillen
House of Representatives


111847


     Subject: [ Alleged Financial Irregularities at the
              ..Upper East Tennessee Rman Development
              Agency, Kingsport, T4m7essee7(HRD-80-68)
                                          -      ;z
     You requested that we review the use of Federal funds
by the Upper East Tennessee Human Development Agency (UETHDA),JjL(ipi
located in Kingsport, Tennessee.  


     UETHDA is a public agency that develops and operates
community action and other human resource programs in eight
Tennessee counties (Washington, Sullivan, Carter, Greene,
Hawkins, Johnson, Unicoi, and Hancock). UETHDA receives
funding from the Community Services Administration (CSA),
other Federal agencies, and State and local agencies.
Funding for 1979 from these sources totaled about $3 million.

     When we received your requests, the Division of State
Audits, Tennessee:Comptroller of the Treasury, was making a
comprehensive review of UETHDA's financial operations and
records. Accordingly, as discussed with your offices, we
limited our work to monitoring the State's audit. We also
reviewed the results of an investigation by CSA's Inspection
Division and audits for fiscal years 1975-77 by the certified
public accounting (CPA) firm retained by UETHDA.

                                                    (013946)


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