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B-163922 1 (1972-03-15)

handle is hein.gao/gaobaagnv0001 and id is 1 raw text is: COMPTROLLE R GENERAL OF THE UNITED STATES WASHINGTON. D.C. 2048 LM096639 B-163922 0-,5 1972 <Dear Senator Proxmire: On December 8, 1971, you referred to us a letter from Mrs. Allen Viney and an article from the Janesville (Wiscon- sin) Gazette and requested our views regarding the possible improper use of funds provided to carry out the Emergency EmiployientAct of 1971 (85 Stat. 146). Mrs. Viney charged fthat Fed6iial funds were used to pay for salaries which, in the absence of these funds, would have been financed by the city of Janesville. In reviewing this matter we examined the applications for funding under the act and the related documents prepared by Rock County, Wisconsin, and Janesville and discussed the matter with Department of Labor officials. We did not ver- ify the city's statements concerning its financial situa- tion, which were submitted to the Department of Labor to justify the city's rehiring of former employees. Section 12 of the act provides, among other things, that the Secretary of Labor not furnish financial assistance for any activity of a program agent--States, counties, and cities--that will result in the substitution of Federal funds for other funds for work that otherwise would be performed. The Department's regulations provide that Federal Emer- gency Employment Act funds not be expended for work that otherwise will be performed at Federal, State, or local ex- pense, unless the expenditure will result in an increase in the number of persons employed. The regulations provide also that persons employed under the act whose most recent employ- ment was with a program agent or any employing agency receiv- ing financial assistance through the program agent must have been unemployed for 30 days or longer prior to being em- ployed under the act. The Department's program guidelines, dated August 27, 1971, state that, if a program agent proposes to use grant funds to pay for work which was performed at any time during 0DOCuiwvLi f AVAILABLE

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