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B-202772 1 (1981-07-23)

handle is hein.gao/gaobabkcv0001 and id is 1 raw text is: 



                     UNITED STATES GENERAL ACCOUNTING OFFICE
                             WASHINGTON, D.C. 20548


OFICE OF GENERAL COUNSEL                     July 23, 1981

     B-202772



     The Honorable Jack Brooks                      IIIIIIIlI    l
     Chairman, Committee on Government                    115956
       Operations
     House of Representatives

     Dear Mr. Chairman:

          In connection with conference consideration of the omnibus
     reconciliation bills, Chairman Dingell's office requested our
     advice on LState audit requirements for proposed block grant
     and consolidated assistance programsT. Because of our recommen-
     dation that a single set of requirements be made applicable to
     all block grant and consolidated assistance programs in the
     bill, we concluded that these recommendations should be con-
     veyed to you, as well as to Chairman Dingell.

          We recommend the following:

             1. That audits be required at least every
                 2 years.

             2. That audits be made in accordance with
                 standards issued by the Comptroller
                 General.

             3. That each audit include a financial
                 and compliance audit.

             4. That at reasonable intervals (but not
                 necessarily every 2 years) the scope
                 of the audit be expanded to cover
                 issues of economy, efficiency, and
                 effectiveness.

            5.   That these requirements be made appli-
                 cable to all block grants and consoli-
                 dated programs in the final bill.

          These recommendations grow out of our own experience in
     auditing and reviewing Federal assistance programs. In view
     of the substantially reduced Federal oversight which is con-
     templated in these cases, it seems reasonable for Congress
     to require some continuing evidence that the oversight respon-
     sibility has been assumed by the States.




                                 7,

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