About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

092113 1 (1970-01-30)

handle is hein.gao/gaobacwee0001 and id is 1 raw text is: -- ST7j UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 JAN 30 1970 CIVIL. DIVISION LM092113 Dear Mr. Smith: The General Accounting Office has reviewed the manner in which the Farmers Home Administration (FHA) measured the progress made by borrowers in raising and maintaining their income and living stand- ards as a result of receiving financial assistance under the Eco- nomic Opportunity (EO) Loan Program. Our review involved primarily an examination of the 1969 study made by FHA in measuring the progress of EO loan borrowers. The results of the FHA study were released to the public in a Department of Agriculture press release dated July 22, 1969. Our review was made pursuant to the Budget and Accounting Act, 1921 (31 U.S.C. 53), and the Accounting and Auditing Act of 1950 (31 U.S.C. 67). Our review was made primarily because of a distinct difference in conclusions between the Department's press release (see appendix) and our report to the Congress (B-130515, August 21, 1969), both of which were concerned with the impact of the EO Loan Program on individual EO loan borrowers. The press release indicated that, on the average, EO loan borrowers had made substantial gains as a result of the EO Loan Program. Our report to the Congress, however, pointed out that, on the basis of our findings and those of the Economic Research Service, only minimal gains could be attributed to the EO Loan Program. On the basis of our review of the 1969 study, we concluded that FHA did not properly evaluate the impact of the EO Loan Program because, in measuring the progress made by EO borrowers, FHA recog- nized not only income obtained from the loan enterprise but also income obtained from other sources. We believe that the gains, which FHA reported as being attributable to the EO Loan Program, were over- stated as a result of including the income from all sources. The FHA 1969 study covered 2,977 borrowers in 50 States and Puerto Rico who had been in the EO Loan Program up to 3 years. The results of this study showed that borrowers in the program for 3 years at December 31, 1968, had greater family income gains than

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most