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B-130515 1 (1970-09-23)

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B-l30515                         RELEASED             SEP 23 1970




Dear Senator Murphy

     In response to your request of August 13, 1970, the General
Accounting Office has completed the examination suggested by
Mrs. Betty Howard of San Pablo3 California, into the salary paid
to Mrs. Jessie Marie Smallwood$ the executive director of the
North Richmond Neighborhood House  Inc., Richmond$ California.
Mrs0 Howard was concerned because she believed that an annual
salary of $17,700 for part-time employment, as reported in a news-
paper article, was out of line for an organization that received
funds from the Fedetal Government.

     We interviewed Mrs. Smallwood, Mrs. Howard, and officials of
the North Richmond Neighborhood House, the United Bay Area Ciusade2
the University of California at Berkeley, and the Oakland Tr~bune.
We also reviewed various personnel and financial records relating
to Mrs. Smallwood's employment and salary.

     On the basis of information developed during our examination,
we believe that Mrs. Howard's concern can be attributed to newspa-
per reporting that did not reflect accurately the Neighborhood
House's press release regarding the executive director's new employ.
ment contract.

     On July 1, 1970, the Neighborhood House issued a press release
that gave certain details of Mrs. Smallwood's May 19, 1970, contract,
which included an increase in salary to $17)700 a year, fringe bene-
fits, and authorization to attend the University of California grad.
uate school at Berkeley on a full-time basis.

     Although the press release did not mention the working status
of either Mrs. Smallwood or any other employee, the news article
appearing in the July 10, 1970, edition of the Oakland Tribune
stated that Mrs. Smallwood:

     1* * *will study fulltime for a master's degree in city
     planning at the University of California$ Berkeley,
     and direct Neighborhood House operations part-time*
     An assistant will be on duty fullt3me, however, and
     Mrs. Smallwood has agreed to serve Neighborhood House
     one year for each year of study.




                                              i !803

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