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AFMD-81-54 1 (1981-07-10)

handle is hein.gao/gaobabcdd0001 and id is 1 raw text is: 

                                                       KI 776J


BY THE COMPTROLLER GENERAL



Report To The Congress


OF THE UNITED STATES



Internal Control Weaknesses Contributed

To The Mismanagement And Misuse Of

Federal Funds At Selected Community

Action Agencies


GAO found that at 12 community action
agencies over $11 million of Federal funds
were being either mismanaged or misused. For
example:

   --Excess cash either had been (1) used to
   earn (and retain) interest, (2) diverted
   into unrecorded bank accounts, (3)
   loaned to other grant programs, delegate
   agencies, and other governmental units,
   or (4) used to subsidize nongovern-
   mental activities. In addition one case of
   embezzlement was noted.                             15770

   --Transactions with closely related service
   corporations contributed to the loss of
   control over Federal funds.

   --Funds were used to pay the same ex-
   penses twice.

   --Assets purchased with Federal funds were
   lost, stolen, or improperly disposed of.

Some corrective action has been taken includ-
ing the recovery of nearly $9 million; however,
more needs to be done.







                                                            A FM D-81-54
                                                            JULY 10, 1981

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