D/XL AS REG IQNAL OFFICE ROOM 500 1912 COMMERCE STRKEZT DALLAS, TEXAS 75201 July 16, 1971 Mr James W Griffith DIrector, Southwest Region OPflce of Economic Opportunity 1100 Commerce Street Dallas, Texas 75202 Dear Mr. Griffith: The General Accounting Office has made a review of selected aspects of Office of Economic Opportunity (OEO) funded programs carrxed out by the Economic Opportunity Agency of Pulaski County, Inc. (COA), Little Rock, Arkansas Our review was conducted pur- suant to the Budget and Accounting Act of 1921 (31 U.S.C. 531, and the Accounting and Auditing Act of 1950 (31 U.S.C. 67). Our audit effort was directed principally toward an evaluation of j-he financial admlnsstration of OEO funded programs for the year ended August 31, 1970, with particular emphasis on control over the disbursement of grant funds, accounting for non-expendable property, and the valuation of in-kind (non-Federal) contributions to total program cost. The review was limIted generally to those actlvitles directly administered by the EOA and , except for certain evaluation work performed in connection wrth the grantee's non-Federal contra- button, did not include delegate agency operations Due considera- tion was given during our examination to current OEO regulations and directives, and to prior audit reports Our review showed that the grantee's method of accounting for and its control over the disbursement of Federal grant monies was generally adequate. Minor questions raised in this review area were satisfactorily resolved during the course of our examination. In other areas of our review, however, two questionable matters were noted which we believe warrant your attention. These are* (1) the inadequate identification and control of non-expendable prop- erty acquired both by donation and with Federal grant funds, and (2) excessive rental values being claimed for certain donated bulld- rng space in meeting non-Federal share requirements of the program, as evidenced by appraisals of these properties provided at our request by the General Services Adminxstratlon These matters were dlscussed in depth with the LOA Executive Director at the conclusion of our review in December 1970 and, In both instances, corrective action was ---- 50-i'l-l ANNIVERSARY 19X1-19 1 , -2- either indicated or had been initiated at that time. These actions include: -- A complete physlcal Inventory of all non-expendable property. In conJunctlon with the physlcal inventory, all controllable property was to be assigned identlfi- cation numbers and property record cards were to be created ln accordance with the provisions of Volume V, CAP Grantee Financial Policy and Procedures Guide Initial efforts to this end had commenced at the close of our review. WV The obtalnlng of an independent appraisal of donated bullding space as a means of establishing its fair market rental value Contact with the EOA Executive Director subsequent to our review showed that this action had been accomplished and that appropriate adjustments to in-kind rental claims were in process. Whrle it appears that efforts undertaken by the grantee, if implemented as indicated, will adequately correct the weaknesses noted during our review, we are bringing these matters to your atten- tlon for informational purposes, and for possible considerat3on zn future fundmg decisions. We plan no addltional reporting as a result of this review, We wish to acknowledge the courtesy and excellent coopevatlon extended our representatives by EOA personnel during the review. Slncerely yours,
Financial Administration of Community Action Programs in Little Rock
Published by the Government Accountability Office on 1971-07-16.
Below is a raw (and likely hideous) rendition of the original report. (PDF)