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RCED-92-259R 1 (1992-08-07)

handle is hein.gao/gaobackcp0001 and id is 1 raw text is: United States General Accounting Office Washington, D.C. 20548 Resources, Community, and Economic Development Division B-249669 147289 August 7, 1992 The Honorable Barbara A. Mikulski Chair Subcommittee on VA, HUD and Independent Agencies Committee on Appropriations United States Senate Dear Madam Chair: On July 1, 1992, you asked us to examine aspects of the Department of Housing and Urban Development's (HUD) process for allocating fiscal year 1992 Comprehensive Grant Program funds to public housing agencies (PHAs). The grant program distributes funds to PHAs to modernize their public housing projects on the basis of a needs-based formula. First, you asked us to determine whether factors aside from HUD's regulations were used to allocate funds. Second, you asked us to examine the bases for changes between HUD's preliminary allocation estimates (Dec. 1991) to individual PHAs and its final allocations (May 1992). In summary, we found that HUD's actions to allocate Comprehensive Grant Program funds were consistent with its final regulations. In addition, our limited spot-checking of HUD's data (such as the number of housing units administered by PHAs) used to produce the final allocations did not disclose any instances in which data were inappropriately changed. Differences between HUD's preliminary estimates and the final allocations to PHAs resulted from HUD's preliminary estimates being based on unverified estimates of PHAs' characteristics (such as the number of PHA units and age of projects) available at HUD's headquarters at the time. However, to prepare the final allocations, HUD asked its field offices to use their records to produce the needed data and have the data verified by each PHA. The verification process caused the underlying data to change, resulting in revisions to PHAs' modernization needs. GAOIRCED-92-259R, BUD's Modernization Allocation ~q 'N

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