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AFMD-84-44 1 (1984-03-28)

handle is hein.gao/gaobabnht0001 and id is 1 raw text is: 3Z /L UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 AC OUN INQ AND FINANCIAL MWANAGEN rr DIVISION MAR 2 8 1984 B-214761 The Honorable James T. Broyhill 123782 Ranking Minority Member Committee on Energy and Commerce Subject: Corporation for Public Broadcasting's Oversight of . ational Public Radio (GAO/AFMD-84-44) This is in response to your letter of March 13, 1984, in which you requested that we express an opinion on the adequacy of the Corporation for Public Broadcasting's (CPB) oversight of National Public Radio (NPR). Specifically, you asked us to: (1) determine if CPB fulfilled its statutory obligation under 47 U.S.C. 396(1) in regard to NPR, and (2) provide documentation supporting our conclusion. SUMMARY In our opinion, CPB and NPR have substantially complied with the literal provisions of 47 U.S.C. 396(1). However, like any Government agency that Congress has given the responsibility to administer a Government program, CPB has a general responsibility to exercise a proper degree of oversight of these activities to ensure that federal funds are properly used and accounted for. As stated in our testimony before the House Subcommittee on Oversight and Investigations of the Committee on Energy and Commerce on February 10, 1984, CPB did not provide adequate oversight of NPR in fiscal years 1982 and 1983 to ensure that NPR was operating in a prudent and financially responsible manner. The lack of effective oversight became significant in fiscal 1983 because NPR was undergoing a major corporate change which included increasing its reliance on non-federal funds to offset decreasing federal funds, increasing broadcast programming, and embarking on a new area of for-profit business ventures. Prudent business practice would indicate that increased oversight by CPB should have been provided during a period of such significant change in NPR financing and direction. This change in direction did not, however, prompt increased CPB oversight, such as an indepth analysis of NPR's fiscal 1983 proposed budget as a whole rather than the review of only those activities financed with federal funds. O DkA33 (182 (916882)

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