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HRD-92-143R 1 (1992-08-28)

handle is hein.gao/gaobackcz0001 and id is 1 raw text is: 


             Unted Stae
GAO          General Accounting Office
             Washington, D.C. 20648

             Human Resource. Division

             B-2500611I1I                                            II

             August 28, 1992                                  147466

             The Honorable John Conyers, Jr.
             Chairman, Committee on Government Operations
             House of Representatives

             Dear Mr. Chairman:

             This letter responds to the Committee's February 11, 1992,
             request to identify previous GAO or Treasury reported
             examples of alleged waste, fraud, or abuse in the General
             Revenue Sharing (GRS) program. The Committee requested that,
             for each example, we describe, among other matters, the (1)
             nature of the incident, (2) amount of funds the local
             government received under the State and Local Fiscal
             Assistance Act of 1972 (P.L. 92-512), as amended, in the year
             of the allegation, and (3) results of any investigation. To
             provide a perspective for assessing each allegation, we also
             summarize GRS goals and the program's design and
             accountability provisions. You indicated that the requested
             information could help the Committee in its deliberations on
             proposed general fiscal assistance legislation--Local
             Partnership Act of 1992 (H.R. 5798).

             Our review of past GAO reports identified three allegations
             of improper GRS expenditures spanning the period from 1972 to
             1986. None of these allegations resulted in a finding of
             fraud or other impropriety. During the 14-year history of
             GRS, Treasury officials and auditors did not publish a
             readily accessible description of allegations the Department
             received, thus prohibiting a retrospective review of claims
             that may have alleged wasteful or fraudulent expenditure of
             federal funds.

             GRS funds provided an integral resource subject to the same
             internal controls that guided state and local allocation and
             expenditure decisions, making federal funds no more or less
             susceptible to waste, fraud, or abuse than state and local
             funds. For each of the allegations we reviewed, we found
             that state and local governments had exercised discretionary
             authority and spent GRS funds to support their priorities in
             accordance with existing laws and regulations.




                                                          GAO/HRD-92-143R

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