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MWD-75-77 1 (1975-05-16)

handle is hein.gao/gaobaaatb0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON, D.C. 20548 60,50 , B-164031 (1) M AY16 1975 rjv The Honorable Silvio 0. Conte House of Representatives 7 L Dear Mr. Conte: Your January 15, 1975, letter asked us to inquire into expend- itures for consulting services under two federally funded education programs. The expenditures involved grants made by the Massachusetts State Department of Education for programs authorized by the Voca- tional Education Act of 1963, as amended (20 U.S.C. 1241), and title III of the Elementary and Secondary Education Act of 1965, as amended (20 U.S.C. 841), which provides support to local education agencies for designing exemplary projects to serve as models for regular school programs. The Office of Education, Department of Health, Education, j and Welfare, administers both programs at the Federal level. Two separate divisions of the Massachusetts State Department of Education used the Federal funds to make grants to a local education' agency--The Hampshire Educational Collaborative. The Collaborative, in turn, contracted with SRS Consultants, Inc., of Boston, a profit- making firm, to provide services under each program. The contracts totaled $39,500. Both were fixed-price contracts with payment con- tingent upon the Collaborative's receipt of grant funds. Copies of invoices which you forwarded to us relating to the Collaborative's contracts with SRS Consultants showed charges of $100 per day or less for consulting services, charges for secretarial services, overhead at the rate of 50 percent of payroll, travel and xeroxing charges, and a profit or fee of about 5 percent of total charges. We spoke with officials from the local education agency, the Massachusetts State Department of Education, the Office of Education, and the Office of the Secretary, Department of Health, Education, and Welfare. We reviewed the Collaborative's grant proposals, budgets, and contracts with SRS Consultants, other information provided by the Collaborative and by the Massachusetts State Department of Education, the Massachusetts State plans for the two programs, and regulations of the Department of Health, Education, and Welfare which provide Office of Education administrative and fiscal requirements as well as program requirements. MWD-75-77 Io

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