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092426 1 (1972-02-23)

handle is hein.gao/gaobacwih0001 and id is 1 raw text is: 



~'                    UNITED STATES GENERAL ACCOUNTING  OFFICE
     C.<                       WASHINGTON,  D.C. 20548

CIVIL DIVISION

                                                          FEB  23 1972

      Dear Mr. Watson:

           The General Accounting Office recently completed a review of
      certain aspects of the Department of Housing and Urban Development's
      (HUD) administration of programs under which it advanced funds  to
      public agencies for public works planning  (PWP). Our review showed
      that HUD should improve its efforts to ensure that advances are
      repaid to the Federal Government in cases where public agencies
      undertook construction of public works for which plans were prepared
      with Federal advances.

           As you know, funds which were advanced to public agencies under
      the PWP programs are to be repaid in full if the public agencies
      undertake construction of the planned public works.  Also, if a pub-
      lic agency uses only a portion of the plans, then it shall repay to
      HUD a proportionate amount of the planning advance which HUD and the
      public agency determine to be equitable.

           HUD records showed that about $73 million in PWP funds were out-
      standing as of December 31,  1971, and, of this amount, about $1.6
      million was considered by HUD to be due to the Federal Government
      because public agencies undertook construction of the planned public
      works projects.

           Under PWP programs, HUD's administrative responsibilities include
      (1) monitoring the construction status of each PWP project for which
      an advance is outstanding, (2) determining the amount public agencies
      are to repay to HUD, and (3) initiating appropriate collection or
      write-off procedures, including referring accounts to the Depart-
      ment of Justice for further collection efforts or legal action.

           During our review, we obtained from the HUD central office and
      from several HUD regional offices financial data on a total of 61
      advances representing 59 PWP projects.  These advances represented
      HUD accounts receivable of about $1 million and, as of December 31,
      1971,.amounted to about two thirds of the $1.6 million in accounts
      receivable for PWP advances.

           We noted that the amounts to be repaid for 5 of these 59 proj-
      ects were less than 60 days old.  Also, we found that special repay-
      ment agreements between HUD and the public agencies had been arranged
      for advances for 7 projects and that 3 of the 59 projects were refer-
      red to the Department of Justice for collection.- For the remaining

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