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089088 1 (1976-11-19)

handle is hein.gao/gaobacvcl0001 and id is 1 raw text is: 


             UNITED STATES GENERAL  ACCOUNTING OFFICE
                         REGIONAL  OFFK E
                           26 FEDERAL PLAZA
                      NEW YORK NEw YORK  10007


                                                Way It V 69






Mr  William Toby
4cting Regional Commissioner
Social and Rehabili tation Service
Region  I
Department of Health, Education,
  and Welfare
26 Federal Plaza
New York, 'New York 10007

Dear Mr  Toby

    We recently completed aJsurvey of the Emergency Assistance to
Ifeedy Families with Children (FAV) program in New York City  We
found that the New York City Department of Social Services (NYCDSS)
received Federal reimbursement for administrative costs which should
have been disallowed because they were based on ineligible cases

    the -FA program was established by the 1967 amendments to the
Social Security Act   Its purpose is to provide financial assistance
and social services to needy families with children to meet emergency
needs when a crisis occurs   The rate of rederal financial participa-
tion is 50 percent of the expenditures for the program   Expenditures
can Include money nayments and services provided to individuals and
the administrative costs associated with providing assistance

    'To participate in this program each State must specify, within
the scope of Federal policy, the emergency needs that will be met
The program, therefore, is not intended to be used routinely as a
substitute for normal assistance under other on-going programs

    In  une 19750 the HEW Audit Agency, Repion II, reported that
from December 1971 through September 1974 the TYCDSS had improperly
reclassified Home J elief (no Federal participation) cases as EAr
cases   As a result the NYCDS  overstated its EAF claims by $34 million,
of which $17 million was the Federal share



                                                      08708A


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