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HRD-82-27 1 (1982-01-07)

handle is hein.gao/gaobabcuf0001 and id is 1 raw text is: ~~3IJI . 1Z9 T COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON D.C. 20548 B-200888 The Honorable Orrin G. Hatch Chairman, Senate Committee on Labor and Human Resources The Honorable Henry A. Waxman Chairman, Subcommittee on Health and the Environment House Committee on Energy and Environment Subject: The Agreement Between the Departments of Health and Human Services and Agriculture to Finance the Construction and Renovation of Rural Health Centers Is Improper (HRD-82-27) We have reviewed the 1978 agreement between the Department of Health and Human Services (HHS) and the Department of Agri- culture for financing the construction and renovation of rural health center facilities using Farmers Home Administration (FmHA) loans. Generally, we concluded that the repayment of FmHA loans for new construction with grant funds awarded under section 330(d) of the Public Health Service Act is improper, constitutes a circumvention of statutory restrictions, and should be discontinued. We are sending this report to you be- cause of your oversight responsibilities regarding HHS health care programs. SCOPE AND METHODOLOGY We became aware of this interagency agreement during an earlier review, which evaluated the adequacy of the need de- termination mechanisms used to make decisions on funding grantees under HHS' urban and rural health initiatives. That review culminated in our report Health Service Program Needs Assessments Found Inadequate (HRD-81-63), which was provided to you on June 15, 1981. In reviewing the loan agreement, we evaluated HHS' position regarding the use of section 330(d) grant funds to pay for com- munity health center construction, and how it has changed over time. We gathered information on the number of loans made under the agreement as well as loan amounts and purposes for which the loans were made. We also reviewed the legality of the loan (102535) JANUARY 7, 1982 117247 Z., >,.j-

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