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B-195437.2 1 (1986-09-17)

handle is hein.gao/gaobabkvk0001 and id is 1 raw text is: 
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Comptroler General           RELEASED
of the United States
Washington. D.C. 20548

          -DO NOT MAIKE AW  T,
   B-195437.2



   The Honorable Glenn English                            1l \ 1I
   Chairman, Subcommittee on Government        U     3180
   Information, Justice and Agriculture
   Committee on Government Operations
   House of Representatives

   Dear Mr. Chairman:

   This is in response to your letter of June 18, 1985,
   requesting our Office to determine whether certain policies
   and practices that have been established by the Rural Elec-
   trification Administration (REA) in administering the rural
   electric and telephone loan programs are within REA's legal
   authority.

   You asked us to aetermine whether REA's reliance on its
   general funas policy in recent years causea REA to fall to
   achieve congressionally imposed minimum loan levels for those
   years. In addition, an attachment to your letter contains
   numerous other questions relating to the legal authority of
   the Administrator of REA to take = variety of actions in
   administering the rural electric and telephone loan
   program. 1/

   Recently, your staff has advisec us of your immeaiate need
   for our response to two questions--one involving REA's fail-
   ure to meet statutorily established minimum loan levels in
   the 1984 and 1985 fiscal years as a result of its aaherence
   to its general funds criteria ana the other concerning tne
   extent to which REA has complied with the requirements of the



   I/ Your letter also asks our Office to evaluate certain
   other aspects of the electric and telephone loan program,
   including REA's effort to eliminate or shift to the private
   sector the engineering standards function, that are not
   primarily focused on the extent of REA's legal autnority.
   These issues have been addressed in a recent report issued by
   our Resources, Community and Economic Development Division.
   GAO, Rural Cooperatives: Information on Two Rural Electri-
   fication Aaministration Proposals, RCED-86-101, B-222848,
   May 30, 1986.

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