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GAO-02-128R 1 (2001-11-05)

handle is hein.gao/gaocrptantx0001 and id is 1 raw text is: G AO Accountability * Integrity * Reliability United States General Accounting Office Washington, D.C. 20548 November 5, 2001 The Honorable Joe Knollenberg Chairman, Subcommittee on the District of Columbia Committee on Appropriations House of Representatives The Honorable Ernest J. Istook, Jr. House of Representatives Subject: District of Columbia Issues: D.C. Workforce Reductions and Related Funding Issues In a January 3, 2001, letter, the Honorable Ernest J. Istook, then Chairman of the House Appropriations Subcommittee on the District of Columbia, requested that we review the use of the $18 million in funding that was to be transferred from the District of Columbia Financial Responsibility and Management Assistance Authority (Financial Authority) to the District of Columbia government for severance payments made to individuals separated from employment during fiscal year 2000 as part of the Mayor's workforce reduction initiative. On September 26, 2001, we briefed the staff of the House Subcommittee on the District of Columbia Appropriations on the results of our review. This letter transmits material from that briefing addressing whether the District had the authority to use the $18 million in funding as well as information in response to other questions posed by the Subcommittee. The briefing document is reprinted in enclosure I. We received written comments from the District's Chief Financial Officer (CFO) and oral comments from the Financial Authority on the briefing document. The District's CFO comments are in a letter dated August 29, 2001, that is reprinted in enclosure II. Results in Brief The District did not meet the conditions set forth in Section 157 of the District of Columbia Fiscal Year 2000 Appropriations Act (Public Law 106- 113). Therefore, the District did not have the authority to use the $18 million in Section 157 funding for the fiscal year 2000 workforce reduction. The District advised us that it believed it had the Financial Authority's approval to use the Section 157 funding and, consequently, incurred $14.3 million in costs during fiscal year 2000 related to the workforce reduction activities. However, the District provided no documentary evidence that GAO-02-128R DC Workforce Reductions and Related Funding Issues Page 1

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