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092725 1 (1969-02-20)

handle is hein.gao/gaobacwpo0001 and id is 1 raw text is: - mUNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 CIVIL DIVISION FEB 2 0 1969 Dear Miss Switzer The General Accounting Office has made a limited review of the practices and procedures followed by the Arkansas Rehabilitation Service, Little Rock, Arkansas, in claiming Federal financial participation in certain costs in- curred in providing services to handicapped individuals under the Federal- State vocational rehabilitation program Our review was made pursuant to the Budget and Accounting Act, 1921 (31 U S C. 53), and the Accounting and Audit- ing Act of 1950 (31 U.S.C. 67) Our review was directed primarily toward examining into the practices and procedures followed in making claims for costs incurred by third parties-- such as State hospitals--who, under agreements with the Arkansas Rehabilita- tion Service, provide services and assistance in support of the vocational rehabilitation program Our review showed that in its claims for Federal financial participation, the Arkansas Rehabilitation Service had overstated, by about $396,000, the costs shown as being incurred by the State in support of vocational rehabili- tation programs. The overstatement resulted primarily from errors and misun- derstandings by the Arkansas State Hospital in computing expenses relating to food services. On the basis of our review, we believe that the administration of third- party participation in the Federal-State vocational rehabilitation program can be improved by requiring State vocational rehabilitation agencies to include in third-party agreements a description of the specific procedures to be used in arriving at the costs to be claimed for Federal financial participation In our opinion, the inclusion of such specifics in agreements between State vocational rehabilitation agencies and third parties would aid the Deoartment of Health, Education, and Welfare (HEW) in reviewing the propriety of claims made by the States for Federal financial participation BACKGROUND The Vocational Rehabilitation Act, as amended (29 U S.C. 31), authorizes giants to assist States in meeting the costs of providing vocational rehabili- tation assistance and services to behaviorly, mentally, and physically handi- capped individuals Under this act, the States have primary responsibility for initiating and administering vocational rehabilitation programs The na- ture and scope of the State vocational rehabilitation program is contained in the State plan which, after approval by HEW, serves as the basis for Federal giants. ~#A ~0~

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