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092662 1 (1969-08-12)

handle is hein.gao/gaobacwnc0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D C. 20548 CIVIL DIVISION AUG 12 969 Mr. Theodore M. Berry Director, Community Action Program Office of Sconomia Opportunity Washington, D. C. 20506 Dear Mr. Berry: The General Accounting Office has made a limited review of certain aspects of the Community Action Program (CAP) carried out by the Leech Lake Reservation Business Comittee (RBC), Cass Lake, Minnesota, an Office of Economic Opportunity (EO0) grantee and the Community Action Agency (CAA) for the reservation. Our review was made pursuant to requests by two members of the Congress and certain members of the Leech Lake Band of the Aiaaesota Chippewa Tribe. In our review, which was made during February and March 1969, we noted evidence of various questionable or improper activities. e are bringing these matters to your attention so that you may inquire further into them and take appropriate action. The Leech Lake CAP Is administered by an eight-member governing board, including the five elected members of the RBC and three elected non-Indian representatives. Since its inception in 1965 through February 28, 1969, 43,307,128 it Federal funds had been expended for the CAP, including $1,005,017 for Nelson Amendment, or Operation Mainstream, projects. US oF anE FUNDS FOR QUESTIONABLE OR IMPROPER PURPOSES The following payments had been made by the CAA from grant funds for questionable or improper purposes. -s $20,925 to members of the CAP governing board, including $17,729 to RBC members serving on the governing board, for attendance at meetings during the 3-year period ended March 31, 1969. Of the $20,925, only $3,014 would be allowable under prescribed guidelines. * $47,262 for wages for skilled laborers to construct low- rent homses for which the RBC as developer, was to receive $265,636 from the Public Housing Administration for furn- ishing the labor and materials to construct the houses. The responsibility for the low-rent public housing programs has since been transferred to the Housing Assistance Ad- ministration, Department of Housing and Urban Development. IP BEST DOCUMENT AVAILABLE

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