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HRD-78-101 1 (1978-05-01)

handle is hein.gao/gaobaaxcm0001 and id is 1 raw text is: 


05709 - [B1246203] 1~(yI

Expenditure ot Funds under Federal wmployment, Traininq, and
Housing Programs in Buffalo, New York. HRD-78-101; B-163922. May
1, 1978. 5 pp. + appendix (15 pp.).

Report to Rep. Henry J. Nowak; Rep. Jack F. Kemp; by Gregory J.
Ahart, Director, Human Sescurces Div.

Issue Area: Employment and Traiiing Frograms: lnternsl
     Administrative Controls oqer CETA Programs (3204);
     Accounting and Financial Reporting (2800);Intergcvernmental
     Relations and Revenue Sharing (400).
 Contact: Human Resources Div.
 Budget Function: Education, Manpower, and Social Services:
     Training and Employment (504) ; Ccmunity and Regional
     Development: Community Development 4451) ; miscellaneous:
     Financial Management and Information Systems (1002).
Organization Concerned: Department of Latcr; Department cf
     Housinq and Urban Development; Buffalo, NY; Erie County, NY.
Congressional Relevance: Rep. Henry J. Nowak; Rep. Jack F. Kemp.
Authority: Comprehensive Employment and Training Act cf 1973 (29
    U.S.C. 801). Housing and Community Development Act of 1974
    (42 U.S.C. 5301). Demonstration Citics and Metrcpolitan
    Development Act of 1966 (P.L. 89-74; 80 Stat. 1255)

         A review Lf how the City of Buffalo, New York, controls
Federal funds granted to it focused cn three areas: general
information on how the city controls Federal funds, review of
actions taken o'a recommendations in a 1977 zepcrt on
Comprehensive Employment and Training Act (CETA) prcgrams in
Buffalo and Erie county, and followup ot allegations regarding
misuse of Federal funds. Buffalo received giants totaling about
$140 million from a number of Federal agencies during fiscal
years 1976 and 1977. The City Comptrcller's Office is
responsible for CETA funds, and the Financial Control of
Agencies has control over block grant funds. Both systems appear
to have adequate controls although this does not preclude
problems with individual transactions. In koth systems, grantees
are given initial advances, and all expenditurcs must te
substantiated with paid receipts from vendcrs before any
additional funds are provided. Actions have been taken cr are
beinq taken by appropriate agencies to correct deficiencies
noted in the 1977 report on CETA programs, including: recovery
of over $92,000 from Buffalo for nine ineligible participations,
insuring that only eligible persons participate in the program,
qathering data to identity groups who should receive preferred
treatmqnt in hiring, requiring certificat.cns regarding
nepotism, and revision of language on political activities.
Documentation regarding allegations cf misuse of funds has been
subpoened by the Grand Jury, but most of the alleged purchases
were made by an agency no longer in existence. (RRS)

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