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HRD-82-44 1 (1982-02-25)

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                     UNITED STATfS'GINERAL ACCOUNTING OFFI7
                             WASHINGTON, D.C. Z0548


HUMAN RESOURCES
                           Nojt to be              February 25, 1982
              ecount ing  O ffice  except  on  the  b :,-: 7 Of  speci f a  ,,o  vl
     B-206510 by the Office of Congressiop ,&



     House of Representatives


     Dear Mr. Rosenthal:                                         117706

          Subject: Poor Management by the Office of Refugee
                    Resettlement in Awarding a Grant to
                    Human Resources Development Associates
                    ( HRD-82-44 )

          Your August 13, 1981, letter asked us to examine grant review
     and award procedures used by the Department of Health and Human
     Services' (HHS') Office of Refugee Resettlement (ORR) in resettling
     Cuban entrants. You expressed particular interest in a July 28,
     1981, grant award to Human Resources Development Associates (HRDA)
     of New York. The $189,585 grant was for relocating 20 antisocial
     Cuban entrants from Fort Chaffee, Arkansas, to the Corona Heights
     section of Queens, New York.

          Because we were already examining ORR's overall grants manage-
     ment and refugee resettlement activities, we limited this review
     to the procedures followed in making the HRDA grant award. Ques-
     tions concerning the adequacy of HHS'/ORR's overall grant review
     procedures are being addressed more fully in our ongoing work. We
     will send you copies of the reports on this work when they become
     available.

          To assess the adequacy of the review process associated with
     the HRDA award, we reviewed documents pertaining to the grant award
     and discussed the grant review and award process with the HHS/ORR
     grants management and program staffs. We interviewed eight of the
     nine panelists who reviewed the HRDA grant proposal in a July 1,
     1981, HHS/ORR review panel meeting to obtain their insights con-
     cerning the review process. The panel included a New York State
     Department of Social Services employee who is also the State refugee
     coordinator. Finally, to obtain the grantee's perspective, we
     interviewed the HMDA director, who submitted the grant proposal
     to HES. Our review was performed in accordance with GAO's current
     Standards for Audit of Governmental Organizations, Programs, Ac-
     tivities, and Functions.

                                                                (104138)

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