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B-181332 1 (1976-12-28)

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                              .LRobert Cntole
                                                                 GGM
                 o THE COMPTROLIRM nINAL.
DECISION *     * OP THE UNITED BTATEB
                            WASHINGTON. D.C. 10348


FILE:  3-181332


DATE:   etkomber 28, 19T6


MATTER OF: Monmouth Community Action ProEram


di


DIGEST:


Claim of community action agency on behalf cf
organization with which it had contracted, for
expenses incurred in good faith in connection
with Office of Economic Opportunity's (OEO)
retusal 'o fu-4 grant which had been previously
approved, ies - lowable in full, even with
respect to grant beneficiaries who exceeded
OO  income poverty guidelines, since there was
no clear requirement in statute, published
regulations, OEO instructions, or grant agree-
ment that participants in project be selected
solely on basis of income.


     This decision results from an appeal of the partial disallowance of
a claim presented by Monmouth Cummunity Action Program, Inc. (MCAP) on
behalf of Youth For Understanding, Inc. (YFU), for reimbursement of
expenses incurred in connection with the funding of an Office of Economic
Opportunity (OEO)1/ grant.

                      STATEMENT OF FACTS

     MCAP is a nonprofit corporation organized under the laws of
New Jersey and in accordancC with sections 210 and 211 of the Economic
Opportunity Azt of 1964, as amended (EOA), 42 U.S.C. §§ 2790 and 2791,
engaged in the operation of ccmmunity action programs within the scope of
the Act.  Y'U is a nonprofit Micuigan corporation engaged in the organi-
zation and administration of programs of international student exchange.

     In March 1972, MCAP and YFTU entered into an oral agreement whereby
YFU undertook to arrange for travel and lodging abroad for a number of
Monmouth County youths for the summer of 1972 if MCAP could obtain funding


1.  OW0 was replaced by the Community Services Administration (CSA) on
    January 4, 1975 pursuant to section 9(a) of the Headstart, Economic
    Opportunity, and Community Partnership Act of 1974, 42 U.S.C. & 2941(a)
    (Supp. V, 1975). Section 3 of this Act (Pub. L. No. 93-544) redesignated
    the Economic Opportunity Act as the Community Services Act of 1974
    (although the former designation is used throughout this decision).


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