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B-171500 1 (1972-04-21)

handle is hein.gao/gaobabkjy0001 and id is 1 raw text is: RESTItCTED - Not to be rieasod outside tale General 1% ceovnt g 0111Ca axcep! i the bas 0p a by the offl~ of Congr~essiounal R.Amt s COMPTROLLER GENERAL OF THE D S T1E9 WASHINGTON, D.C. 24 R,-ELEASED APR 2 1 1972 1B -171500 7 ', i:: i : Dear Mr. Jacobs: At your request we examined into certain aspects of the Model Cities Program in Indianapolis, Indiana. This program is administered, at--th'elocal level, by a city demonstration agency (CDA). We obtained information on the operation and administration of the program relative to the number of employees and the salaries paid to key employees of CDA and of the major operating agencies administering Model Cities projects for CDA. We also reviewed the job descriptions of such em- ployees and discussed their day-to-day functions and activities with ap- propriate CDA, city, and operating agency representatives. At the completion of our fieldwork, we discussed with your office the results of our review and provided you with specific information on the program in Indianapolis. As agreed with your office, this report briefly summarizes the major points covered during our discussion. In the fall of 1968 the Department of Housing and Urban Develop- ment (HUD) approved Indianapolis to participate in the Model Cities Program. In May 1969 the city was awarded a $225,000 grant to plan its comprehensive demonstration program. HUD awarded a supplemen- tal grant of $6,243,000 to the city for its first action year of the pro- gram, which began in May 1970 and which continued through August 1971. In September 1971 the city received another HUD grant of $6,243,000 for its second action year of the program, which will continue through Au- gust 1972. For the first action year CDA budgeted for a staff of 81 positions. The number of budgeted positions was reduced to 67 for the second year of the program. During the first action year, the HUD-approved CDA operating budget authorized annual salaries of $15,000 or more for seven of the 81 CDA positions, including the director at $20,000 and five key assistants at $17,000 each. In the second year of the program, the num- ber of CDA positions having annual salaries of $15,000 or more was re- duced to only two--the administrator (formerly director) at $20,788 and the principal planner at $17,160. We discussed the CDA organizational structure and salary scale with city officials and were told that CDA included a number of positions

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