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088966 1 (1974-03-07)

handle is hein.gao/gaobacuxu0001 and id is 1 raw text is: 

     SS2

                      UNITED STATES GENERAL ACCOUNTING  OFFICE

                               WASHINGTON,  D C  20548


MANPOWER AND WELFARE
     DIVISION

                                                  March  7, 1974



           Mr. Robert L. Trachtenberg
           Deputy Assistant  Secretary for Grants
             and Procurement Management
           Department of Health,  Education,
             and Welfare
           Washington, D.C.   20201

           Dear Mr. Trachtenberg.

                The General Accounting  Office is reviewing the grant and
           contract programs of  the Department of Health, Education, and
           Welfare  (HEW) aimed at developing Health Maintenance Organ-
           izations.  As part of  this review, we are examining grantees'
           financial management  systems to ensure that adequate accounting
           controls exist and  that grant funds are being used for intended
           purposes.

                This  letter deals only with the results of our financial
           review at  the Abnaki Health Council (Abnaki), Claremont,
           New Hampshire.  The matters  contained herein have been
           discussed with HEW  staff at the Boston Regional Office and
           are being  furnished for your information and comment.

           BACKGROUND

                Abnaki was  formed in September 1970 to plan and develop
           a regional  system of health care delivery for a 41-town area
           of about  77,000 people.  From September 1970 until June 1973,
           Abnaki operations were  financed with $26,437 in non-Federal
           funds and $641,529  in Federal funds  The  detail of the Federal
           funds  is shown on the following page.

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