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R by Vis t W of Congrw Ima R-
COMPTROLLER GENERAL OF THE UNITED STATES
LLEASED WASHINGTON, D.C. 20548
B-130515 OV 18 1971
Dear Mr. Perkins:
Pursuant to your requests of July 13 and 15, 1971, we are enclos-
ing a report on our financial audit of an Office of Economic Opportunity
;2 grant to the Florida Rural Legal Services, Inc., to operate a legal ser- /
vices roUgam in six southern Florida counties during the 12-rnonth-
period ended September 30, 1971. In accordance with your request, par-
ticular attention was paid to the expenditures and activities of Florida
Ruralls Belle Glade office. During our audit we also examined into the
statements of a Belle Glade, Florida, attorney concerning the propriety
of Florida Rural attorneys? acceptance of certain legal cases for repre-
sentation.
Our financial audit, which included an examination of the Belle
Glade office's financial transactions and internal controls for the period
April 1 to June 30, 1971, revealed some deviations from Office of Eco-
nomic Opportunity and Florida Rural policies and instructions relating
to starting salaries, leave records, severance pay, and non-Federal
contributions.
We brought these matters to the attention of Florida Rural offi-
cials who agreed to take, or give consideration to, corrective actions in
most instances. We also brought these matters to the attention of Office
of Economic Opportunity officials.
We were unable to make a definitive determination as to the eligi-
bility of a Florida Rural client whose income and net worth was, accord-
ing to the Belle Glade attorney, sufficient to disqualify the client for
legal assistance. We did find that Florida Rural's acceptance of this
client's case appeared questionable. The Office of Economic Opportu-
nity permits Legal Services program attorneys, under certain condi-
tions, to handle legal cases when the financial situation of a client is
nearly poor. We found, however, that the client's annual income,
Florida Rural's prime factor for determining eligibility, exceeded by
$680 the income limitation established by Florida Rural for its clients.
Florida Ruralts involvement in a suit for damages filed by the
same client, in our opinio ]n zJ3 ry to the Office of Economic
50TH ANNIVERSARY 1921-1971](ViewImageLocal?handle=hein.gao/gaobabldp0001&div=1&collection=&method=preview&ext=.png&size=3)