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B-200199 1 (1982-07-07)

handle is hein.gao/gaobadklm0001 and id is 1 raw text is: 12,EISION FILE: B-200199 MATTER DIGEST: TH COMPTROLLER GIENEIRAL= OF THE UNIT!D *TATIU WASHINGTON, t., ,01540 DATE: July 7, 1982 OF: Ccramity Services Administration - Fiscal Year 1979 Crisis Intervention Program funds 1. Departient of Health and Human Services, as succes- sor to Comrunity Services Administration (CSA), should not recover furds expended pursuant to Stip- ulation and Agreed Order entered to resolve court action alleging CSA iuproperly withheld paymnts due plaintiffs under fiscal year 1979 Crisis Inter- vention Progrtm, Although Order was subsequently vacated, grant fund appropriation was validly obli- gated prior to close of fiscal year 1979 by filing evidence of potential liability because of pending litigation, pursuant to 31 U.S.C. S 200(a)(6). Funds were therefore 3till available when grants were made in fiscal year 1980. 2. Department shculd make further payments to grantees only to the extent grantee incurred obligations in reliance on the grant agreement. Grants way then be termin:ted. The Director of the Coimunity Services Adminintration (CSA) 1e requested our decision on what action CSA should take concerning te expenditure of funds under the fiscal year 1979 Crisis Intervention Program (CIP)r which is the subject of a lawsuit, Simr v, Rios. Under a Stipulation and Agreed Order in that litigation CSA com- mitted itself to expend $18 million of CIP funds. In furtherance of the agreements it rade In the Stipulation, CSA entered into grant agreements totalin. $4.5 million. After part of ths sum had been disbursed to the grantees, the trial court vacated the Stipulation and Agreed Order. CSA asked what action it should take with respect to the grants it had made and the funds it had disbursed under the terms of the vacated Order. _/CSA was terminated effective October I, 1981. We understand that its remaining affairs are being handled by the Department of Health and Human Services. References to CSA, where appropriate, also in- clude the Departuent, as successor to tte Administration. 9, L

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