oversight

Activities Managed by Community Action Migrant Program, Inc., Fort Lauderdale, Florida

Published by the Government Accountability Office on 1971-06-16.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

Activities Managed
F3yCommunity Action
Migrant Program, Inc.
Fort Lauderdale, Florid          8-130515




Office of Economic Opportunity




UNITED STATES
GENERAL ACCOUNTING                      OFFICE
                                  UNITED   STATES GENERAL              ACCOUNTING        OFFICE
                                                 WASHINGTON,       D.C.      20548


CIVIL   DIVISION



                   B-130515

                   Dear     Mr.     Carlucci:

                              This is our report           on activities         managed         by Community
                   Action      Migrant  Program,            Inc.,   Fort       Lauderdale,         Florida,

                              Our  findings,       conclusions,         and recommendations              are sum-
                   marized       in the digest        which      is bound in the report.            Your     atten-
                   tion is invited         to section      236 of the Legislative            Reorganization
                   Act of 1970 which            requires       that you submit        written      statements
                   of the action        taken with respect            to the recommendations.                 The
                   statements         are to be sent to the House               and Senate       Committees
                   on Government             Operations       not later     than 60 days after           the date
                   of this report         and to the House          and Senate       Committees          on Ap-
                   propriations         in connection        with the first       request     for appropri-
                   ations     submitted       by your agency           more    than 60 days after           the date
                   of this report.

                         We shall appreciate                   being      advised    also      of the   action   taken
                   on our recommendations.

                          Copies       of this report     are being    sent to Representative
                   Paul G. Rogers         and to the Director,        Office   of Management
                   and Budget,       to the House      and Senate     Committees      on Govern-
                   ment Operations,           and to the House      and Senate    Committees
                   on Appropriations.

                                                                       Sincerely      yours,




                                                                       Director,      Civil      Division

                   The Honorable      Frank   C. Carlucci
                   Director,   Office   of Economic     Qpportunity




                                       -        50TH   ANNIVERSARY           1921-1971
I
        iENER4LACCOUNTING
                        OFFICE                             ACTIVITIES #ANAGEDBY COMMUNITV
I
I       REPORTTO THEDIRECTOR,                              ACTION MIGRANT PROGRAM,INC., FORT
I       OFFICEOF ECONOMIC
                        OPPORTUNITY                        LAUDERDALE, FLORIDA
I
I                                                          ifylcg;,;f Economic Opportunity
I

I
I       DIGEST
        ------
I
I
I
I
I       WHYTHE REVIEW WAS MADE
I                                                       /
I                 The Community Action Migrant Program, Inc. (CAMP), Fort Lauderdale,
I
I                 Florida'; conducts migrant and seasonal farmworker antipoverty programs.
I
I                 CAMPreceived Federal funds of about $1.1 million   during the period May
I                 1969 through June 1970. The funds were provided under grants by the
I
I                 Office of Economic Opportunity  (OEO) and under a contract with the Of-
I                 fice of Education, Department of Health, Education, and Welfare,
I
I
I                 OEO provided funds to CAMP for (1) the administration     and operation of
I                 education, training,  housing, senior citizens,   and other programs di-
I
    I             rected toward improving the living   conditions  of migrant and seasonal
    I
    I
                  farmworkers and their families   and (2) a research and demonstration proj-
    I             ect designed to find alternative   ways to improve the life of families    who
    I             want to leave the migrant stream and obtain permanent employment.
    I
    I
    I             The Office of Education provided funds to CAMP for the operation of an
    I             educational talent search program designed to encourage migrant youths
    I             who had dropped out of school to reenter or seek vocational  training and
    I
    I
                  to assist youths to continue their education.

                  The General Accounting Office    (GAO) examined into CAMP's management of
                  grant funds and inquired into    selected aspects of program operations.

    I
    I   FINDINGSANDCONCLUSIONS
    I
    I
    I          'CAMP administered  a variety of antipoverty  programs that provided bene-
    I           ficial  services to migrant and seasonal farmworkers in southern Florida;
    I
    I           however3 certain employment projects were experiencing difficulties.
    I            (See p. 6.)
    I
    I
                  Of the 308 persons enrolled in training    programs involving     stipends,
    I             about'218, or 71 percent, were not eligible     to participate    in the pro-
    I
    I             grams under applicable  OEO criteria,   in GAO's opinion.      CAMP paid sti-
    I
    I             pends of about $71,300 to these ineligible    persons.     Also, CAMP spent
    I             about $8,000 for travels meals, and housing for ineligible        participants
    I
                  in one of its employment projects.
    I         ,

    I   Tear Sheet
    I
    The high incident     e of ineligible     participants     detracted     from the effec-
    tiveness     of CAMP"s programs.      Persons who were ineligible           to participate
    in CAMP programs      could have received        similar types     of assistance      under
    other    programs  designed   for those who were not migrants            or seasonal
    farmworkers.      (See p. 14.)

    None of the 72 residents              living  in a CAMP-sponsored         housing  project    met
    OEO eligibility          criteria     because   61 residents      were not migrant      or sea-
    sonal farmworkers            and 11 residents     earned     incomes   in excess of the pre-
    scribed     limitations.          (See PC lg.>

    The executive      director       of CAMP disagreed       with GAO that          ineligible        per-
    sons participated         in the training        programs    and in the housing             project.
    He stated     that   the infomation           on such participants          in CAMP's files
    was not necessarily         valid      because many participants            did not want to
    show that     they were farm laborers            on their     applications         for enrollment
    in the programs.         He stated        also that    the information         shown on loan ap-
    plications      was the type required           by the Federal        Housing      Administration
    before     it would approve         loans for the purchase          of units       in the housing
    Project.      (See ppe 16 and 19.)

    Although   the executive       director        indicated      that the participants          in-
    cluded misleading      information         on their      applications       for enrollment       in
    the programs    GAO interviews          of 20 participants            who received     stipends
    under the training       programs       indicated,       in general,      that    the informa-
    tion was accurate.

    GAO also noted        that     the information       contained     on applications     for loans          I
    to purchase      housing       units     had been verified       by the CAMP housing      staff           I
    and by credit        bureaus      before    the applications       were submitted    to the
    lending   institution          and to the Federal         Housing   Administration     for re-
    view and approval.             (See pp. 16 and 19.)

    Improvements     were needed in CAMP's accounting              for employee    leave and
    compensatory     time,     travel,     purchases of supplies       and equipment,     and
    accountable     property.          GAO noted some expenditures       which had not been
    budgeted     or authorized         by OEO. Also controls      over program     revenues
    were not adequate.           (See p* 21.)

    CAMP has taken certain      actions      to correct     some of the weaknesses      in
    the administration     of grant     funds.     Additional     actions9  however,    are
    needed to improve    the accounting        for travel,     property,   and revenues
    and to avoid expenditures        which have not been budgeted,          authorized,     or
    approved   by OEO in advance.         (See p. 27.)


RECOMVENDATIONS
              OR SUGGESTIONS                                                                                  I
                                                                                                              I
    The Director,       OEO, through        the   Office   of   Operations      should

    --ensure    that   CAMP, in selecting      participants        for       its various  pro-
       grams,   adheres   to OEO's eligibility         requirements            (see p- 20) and


                                                                                                              I
                                                   2                                                          I
                 --closely     monitor     CAMP's financial         management       practices    to ensure    that
                    corrective     actions     regarding     travel     practices;        control   over,   and use
                    of, accountable        property;     fund expenditures;           and accounting      for pro-
                    gram revenues       are implemented        (see p. 28).




I
I   Tear Sheet
I




                                                         3
                             Contents
                                                                  Pane

DIGEST                                                              1

CHAPTER

   1        INTRODUCTION                                            4

   2        PROGRAMACTIVITIES                                       6
               Regional offices                                     6
               Employment projects                                  7
               Senior citizen   program                            12
               Housing program                                     12
               Talent search program                               13

  3         IMPROVEMENTSNEEDED IN SELECTING PROGRAM
            PARTICIPANTS                                           14
                Training   programs involving stipends             14
                Housing project                                    19
                Conclusions                                        20
                Recommendation                                     20

  4         IMPROVEMENTSNEEDED IN ADMINISTRATION OF
            GRANT FUNDS                                            21
                Payrolls    and related   costs                    21
                Travel                                             22
                Procurement                                        23
                Controls    over accountable    property           23
                Expenditures     for items not budgeted or
                   authorized                                      25
                Accounting    for program revenues                 26
                Conclusions                                        27
                Recommendation                                     28

   5        SCOPE OF REVIEW                                        29

APPENDIX

        I   Funds received by CAMP, and related          expen-
            ditures  for the 1969-70 grant year                    33

   II       Salaries of principal       CAMP officials    as of
            July 1, 1970                                           34
APPENDIX                                                             Page

 III       Members of the CAMP board of directors               as
           of July I, 1970                                            35

                            ABBREVIATIONS

CAMP       Community Action        Migrant    Program,   Inc.

GAO        General    Accounting     Office

OEO        Office    of Economic Opportunity
' GENEtiL, ACCOUiVTINGOFFICE                   ACTIVITIES MANAGEDBY COMMUNITY
  REPORTTO THE DIRECTOR,                       ACTION MIGRANT PROGRAM,INC., FORT
  C'FFICE OF ECONOMICOPPORTUNITY               LAUDERDALE, FLORIDA
                                               Office of Economic Opportunity
                                               B-130515


DIGEST
------

WHYTHE REVIEW WAS MADE

     The Community Action Migrant Program, Inc. (CAMP), Fort Lauderdale,
     Florida, conducts migrant and seasonal farmworker antipoverty programs.

      CAMP received Federal funds of about $1.1 million  during the period May
      1969 through June 1970. The funds were provided under grants by the
      Office of Economic Opportunity (OEO) and under a contract with the Of-
      fice of Education, Department of Health, Education, and Welfare.

      OEO provided funds to CAMP for (1) the administration     and operation of
      education, training,  housing, senior citizens,   and other programs di-
      rected toward improving the living   conditions  of migrant and seasonal
      farmworkers and their families   and (2) a research and demonstration proj-
      ect designed to find alternative   ways to improve the life of families    who
      want to leave the migrant stream and obtain permanent employment.

      The Office of Education provided funds to CAMP for the operation of an
      educational talent search program designed to encourage migrant youths
      who had dropped out of school to reenter or seek vocational  training and
      to assist youths to continue their education.

      The General Accounting Office    (GAO) examined into CAMP's management of
      grant funds and inquired into    selected aspects of program operations.


 FINDINGS AND CONCLUSIONS

      CAMP administered  a variety of antipoverty  programs that provided bene-
      ficial  services to migrant and seasonal farmworkers in southern Florida;
      however, certain employment projects were experiencing difficulties.
       (See p- 6.)
      Of the 308 persons enrolled in training    programs involving     stipends,
      about 218, or 71 percent, were not eligible     to participate    in the pro.
      grams under applicable   OEO criteria,  in GAO's opinion.      CAMP paid sti-
      pends of about $71,300 to these ineligible    persons.     Also, CAMP spent
      about $8,000 for travel,   mealsI and housing for ineligible      participants
      in one of its employment projects.




                                        1
     The high   incidence                narticipants
                               ~1:‘ ‘wligiblc           detracted from the effec-
     tiveness   of   CAPlP'5          Persons who were ineligible
                               pri~;:rrrms      I                    to participate
     in CAMP programs czl!C: Ihave received similar   types of assistance under
     other programs designed for thos e who were not migrants or seasonal
     farmworkers.   (See p. 'IQ.)

     None of the 72 residents living       in a CAMP-sponsored housing project met
     QEO eligibility    criteria    because 61 residents were not migrant ar sea-
     sonal farmworkers and 11 residents earned incomes in excess of the pre-
     scribed limitations.        (See p. 19.)
    The executive director     of CAMPdisagreed with GAO that ineligible      per-
    sons participated   in the training    programs and in the housing project.
    He stated that the information      on such participants  in CAMP's files
    was not necessarily    valid because many participants   did not want to
    show that they were farm laborers on their applications       for enrollment
    in the programs.    He stated also that the information     shown on loan ap-
    plications   was the type required by the Federal Housing Administration
    before it would approve loans for the purchase of units in the housing
    project.    (See pp* 16 and lg.)

     Although the executive director   indicated that the               participants   in-
     cluded misleading information   on their applications               for enrollment in
     the programs GAO interviews   of 20 participants   who             received stipends
     under the training  programs indicated,    in generals             that the informa-
     tion was accurate.

    GAO also noted that the information  contained on applications   for loans
    to purchase housing units had been verified   by the CAMP housing staff
    and by credit bureaus before the applications   were submitted to the
    lending institution and tc~ the Federal Housing Administration   for re-
    view and approval.   (See ppO 16 and 19.)

    Improvements were needed in CAMP's accounting for employee leave and
    compensatory time, travel,   purchases of supplies and equipment, and
    accountable property.    GAO noted some expenditures which had not been
    budgeted or authorized by OEQ. Also controls over program revenues
    were not adequate.    (See p+ 21.)

    CAMP has taken certain actions to correct some of the weaknesses in
    the administration  of grant funds.   Additional   actions3 however, are
    needed to improve the accounting for travel,     property, and revenues
    and to avoid expenditures which have not been budgeted, authorized,      or
    approved by OEO in advance.    (See pa 27.)


RECOk?&'ENDATIONS
               OR SUGGESTIONS

    The Director,      OEO, through the Office          of Operations   should
    --ensure that CAMP, in selecting       participants    for its various pro-
       grams, adheres to OEO's eligibility        requirements (see p. 20) and


                                                    2
--closely     monitor     CAMP's financial         management       practices    to ensure    that
   corrective     actions     regarding     travel     practices;        control   over,   and use
   of, accountable        property;     fund expenditures;           and accounting      for pro-
   gram revenues       are implemented        (see p. 28).




                                        3
                                CHAPTER 1

                              INTRODUCTION

      The Community Action Migrant Program, Inc.      OXMP) 9
fiort Lauderdale,  Florida,   is responsible for conducting
migrant and seasonal farmworker antipoverty     programs under
grants from th e @ffice of Economic Opportunity     (OEO) and
under a contract  with the Office of Education,     Department
of Health, Education,     and Welfare.

      CAMPwas preceded by a nonprofit       agency which was in-
corporated     in 1965 under the name Community Action Fund,
Inc.,   located in St, Petersburg,   Florida.     In August 1967
the corporation     moved to Fort Lauderdale and in 1968 the
name was changed to Community Action Migrant Program, Inc,

       At July 1, 1970, CAMP Rad a staff     of 80 full-time  em-
ployees and was governed by a 14-member board of directors,
six of whom represented      farmworkers.   A schedule of the
salaries   of principal   CAMP officials  is included as appen-
dix II and a list     of board members is included as appen-
dix III.

      To assist migrant and seasonal farmworkers     in 10 coun-
ties located in southern Florida,      CAMP received Federal funds
of about $1.1 million    during the period covered by our re-
view, May 1969 through June 1970. During this period CAMP
expended over $1 million--    $961,000 from QEO funds, $43,000
from the Office of Education funds, and $29,000 from pro-
gram revenues.   (See app. I.>

       CAMP stated in its refunding            proposal to CEO for the
1969-70 grant year ending May 31, 1970, that it planned to
contact and provide services             to 20,000 migrant or seasonal
farmworkers,      of which 4,000 would be heads of households.
CAMP reported       to CEO that,     in fiscal     year 1970, it had as-
sisted (1) about 8,800 poar persons through contacts in the
field,    contacts    in its regional       offices,    referrals  to other
agencies,     and follow-up     activities       on persons previously
assisted    and (2) 308 persons enrolled             in training  programs
involving     stipends during the 1969-70 grant year.
     CAMP was refunded by OEO in the amount of $840,000 for
the 1970-71 grant year and by the Office of Education in the
amount of $63,700 for the program year ended May 31, 1971.
                               rnTER    2

                          PROGRANACTIVITIES

      During the 1969-70 grant year9 CAMP administered          a va-
riety  of antipoverty    programs directed    toward assisting     mi-
grant and seasonal farmworkers.       A brief    discussion   of the
more important    programs and projects    administered     by CAMP
is presented below.

       Although our review was not directed    toward evaluating
CAplpDs program activities,     we noted that certain     employment
projects    were experiencing   difficulties.  We have included
in the discussion,     where they were readily   identifiable,    the
reasons for the difficulties,

REGIONAL OFFICES

       CAMP established     six regional     offices   in southern Flor-
ida to provide services to migrant and seasonal farmworkers.
The regional     offices  were responsible        for (1) organizing  and
sustaining    resident   participation     in community action and
(2) mobilizing      the resources of other local agencies in a
concerted and unified       effort    to assist migrant and seasonal
farmworkers,

     Major   activities    of the regional    offices   included

      --identifying     the poor migrant and seasonal farmworkers
          in the area and gathering    information    on their needs,
         making them aware of available       programs, and encour-
         aging them to seek assistance      through the regional
          offices   and from other government programs that could
         provide assistance;

     --following  up on services provided and on the continu-
        ing needs of persons to whom services have been pro-
        vided;

     --forming    job cl,ubs to provide initial    orientation    to
        migrants    and seasonal farmworkers    on the responsibil-
         ities  of obtaining   and holding a job; and



                                    6
      --assisting   in the operation    of Federal credit   unions,
         recommending persons for      articipation  in  employment
         projects,  and operating    several of the employment
         projects.



        Under an CEO research and demonstration        grant,    CAMP
initiated    a number of job development,    training,       and place-
ment projects    designed to find a%ternative      ways to improve
the %ife of families     who want to leave the migrant stream
and obtain permanent employment.        Demonstration      grant funds
were used for the operation      of these projects      through Feb-
ruary %970, when CEO instructed       CAMP to terminate       demonstra-
tion grant fund expenditures,      except for staff       salaries.

       Upon termination    of the demonstration  grant,     CAMP
transferred     some of the employment projects    to the OEO-
funded migrant program and continued the projects,            Addi-
tiona%%y under the migrant program, CAMP initiated           several
other employment projects       and provided administrative     and
            port to the employment projects.

     Discussions       of the more important    employment   projects
fo%%ow.

Mechanics   pro.ject

      In May 1968 CAMP developed a mechanics-training       project
for migrant and seasonal farmworkers   in cooperation     with an
automobife manufacturer   and several car dealers.      Later,
c    expanded the project   to another automobile     manufacturer.

        During the 1969-70 grant year, CAMP expended demonstra-
tion and migrant program grant funds of $26,186 for 43
trainees     to partici ate in the two manufacturerse mechanics-
training     programs.

       Under the mechanics-training         project,    CAMP screened and
tested applicants   and referred      them to car dealers for spon-
sorship in the manufact,urers@ programs.             Upon acceptance by
a deafer, the applicant-trainee         first    received on-the-job
training   for 30 to 60 days from the dealer before entering
one of the manufacturers@      training       schools in Jacksonville,
FPorida.
                                     7
       One cf the manufacturer's     mechanics-training    programs
lasted 17 weeks-- the trainee     divided his time between the
training   S@h,oOPand the sponsoring dealership.         The other
mechanics- training    program lasted 23 weeks--l0      weeks of in-
struction    at the training   school and 13 weeks of on-the-job
training   at the sponsoring dealership,        Neither a formal
contract   nor a working agreement existed between CAMP and
the sponsoring dealers.       The dealers,    however, signed let-
ters agreeing to sponsor specific       trainees.

       CAMP paid the entire     cost of room and board and a
training      cost of $25 a week for each trainee      while the stu-
dents were in training.        Upon successful    completion    of
training,      CANP billed the  sponsoring   dealer  for   half  of the
total     csst 0 CAMP paid each trainee    a stipend ranging from
$33 to $63 a week depending upon the number of his depen-
dents.

     After their  training     the participants       returned to the
sponsoring dealerships     for further     on-the-job     training, dur-
ing which time they received at least the minimum wage set
by Federal law.

Automobile-reconditioning        pro.ject

        In January 1969 CAMP initiated a training  project    to
train migrant and seasonal farmworkers     in the skill    of recon-
ditioning    automobiles,

       The project   objective     was to provide individuals    with
an opportunity     to leave the migrant stream by obtaining         jobs
with local automobile       dealers or with private     firms that re-
condition   automobiles,       Trainees were scheduled to complete
their training     in 12 weeks.

       CAMF furnished   instructors      and other personnel to man-
age the project     and provided participants        with training     and
instruction    in the methods of reconditioning           automobiles.
CAMP furnished     also the necessary materials         for the course.
Automobiles to be reconditioned         were solicited      from automo-
bile dealers and private       individuals     who were charged a fee
of $18 to $20 for the service.           During the 1969-70 grant
year, a total     of 67 persons participated        in the project.        .


                                      8
      The automobile-reconditioning          project   was conducted at
two locations.     One facility,      called Mr. Kar Kleen, began
operations    at Pompano Beach, Florida,         in January 1969,      In
September 1970 CAMP terminated         all financial     assistance    to
the Mr. Kar Kleen facility,         However, two CAMP employees,
who were being paid salaries        totaling     $11,815 annually,con-
tinued to provide technical        and management assistance        to
personnel at the facility.

      The second facility, called Florida Auto Cleaners,    be-
gan operations  at Fort Lauderdale in June 1969 but was ter-
minated in December 1969 because of insufficient  business.

       The reconditioning       project     was initially   funded under
an OEO demonstration       grant, but OEO directed        CAMP by letter
dated January 28, 1970, not to spend any more demonstration
grant funds on the project          after February 1970.        OEO stated
that the Mr. Kar Kleen facility             had outlived  its usefulness
as a demonstration      project     and that,     if CAMP wanted the fa-
cility   to continue operating,          funds from the OEO migrant
program grant should be used,

     CAMP decided to continue  operating            the facility     with
funds from OEO's migrant program grant             until  the facility
became self-sufficient.

      During the l-year period ended May 31, 1970, Mr. Kar
Kleen sustained a net loss of about $66,000 on its opera-
tions --costs    totaled about $89,000 and sales totaled     about
$23,000.      The costs of operating  the facility included:

    Stipends                                                  $35,020
    Salaries                                                   25,441
    Travel                                                      3,147
    Lease of facilities                                         5,900
    Supplies,    utilities,    and petty    cash
       purchases                                                19,521
         Total                                                $89,02ga
aDoes not include an amount for central   office administrative
 costs associated   with bookkeeping and cost of supplies con-
 sumed at the training   facilities.



                                     9
Fishing   project

        In May 1968 CAMP initiated      a training   project  in the
operation    and maintenance of small boats and in the skills
and techniques     of ocean fishing,       CAHP was to establish    a
commercial fishing     cooperative     which would supply fish to
local restaurants     and provide employment for the individuals
trained    under the project.      Training    was scheduled to take
from 8 to 9 weeks, during which time the trainees            would re-
ceive stipend payments.

       Training   started    in CAMP's Pompano Beach region but was
later transferred       to Bimini Island in the Bahamas because of
problems encountered with residents        and boat owners in the
Pompano Beach area.         The cost of operating   the training
project    during the 1969-70 grant year was $23,365, including
stipends totaling       $3,349 paid to 11 trainees,

       Another training  project  in commercial        fishing   was
started    in the Fort Myers, Florida,  region       in July 1969.
Costs of $2,800 were incurred     for operating        this project.
Included in these costs were the instructor's             salary of
$1,374 and stipends totaling     $1,263 paid to        six trainees,

       After an onsite review of the fishing     projects,   OEO
instructed   CAMP on September 5, 1969, to close out the fish-
ing projects   no later than October 1, 1969.       OEO stated that
its decision was based on the following      factors.

      1, Excessive     expenditure   of funds had been made.

      2. Capital  equipment that      cost in excess of $500 had
         been purchased without       OEO's prior  consent,

     3. Funds expended for staff,   supplies, and equipment
        had not been authorized   by the terms of the grant.

     4. Adequate supervision    or direction      had not been pro-
        vided 'under the project.

     5. OEO approval had not been obtained prior to hiring
        instructors  and support staff for the project.

     6. Cooperatives      had not been established      as proposed.
      7, organized instruction       had not been provided   to proj-
         ect participants.

      8. Time and attendance records had not been kept          on
         trainees who had received  stipends.

      c     advised OEQ by      letter   dated September 29, 1969,
that i     board of directors        had unanimously agreed to comply
with CEO's instruction.         The project    had received unfavor-
able publicity    which the     board believed could have had an
adverse effect    on C    's    overall   operations,



        In 1968 CAPP"s regional       office in Homestead, Florida,
started    a training     project  with the objective   of establish-
ing a farming cooperative.          CAMP leased farmland for use by
project    participants      to grow and harvest crops.    The project
became inactive        in December 1969 and was terminated     because
financial    backing aside from CAMP could not be obtained.

       During the 1969-70 grant year, the operating  expenses
amounted to $6,601 and stipends paid to the participants
amounted to $3,408.     Receipts from sales of farm products
totaled    $4,005.                                            54
Bakery nroject

      A training   project  was initiated      in June 1969 by the
regional   office  in Homestead to organize a cooperative        bak-
ery to be operated as an independent business by individmls
who had received baker training.          Bakery products were sold
door to door.     The bakery project      was terminated  in May 1970
because proceeds were not sufficient         to cover expenses and
CAMP could not obtain financial        support from sources other
than QEO,

      During the 1969-70 grant year, the bakery operating
expenses totaled  $14.,289, incl,uding stipends of $11,693 paid
to five trainees,   Receipts from the sale of baked goods
during this period totaled    $2,656.
 SENIOR CITIZEN PROGRAM

     In July 1969 CAMP was awarded a $40,000 l-year grant
by OED to operate a senior citizen  program through June
1970 for migrant and seasonal farmworkers  aged 55 or over.

       During the 1969-70 grant years CAMP expended $38,800
to operate the program and to provide food, employment as-
sistance,    transportation,    limited  health services,     and legal
aid to the elderly        poor, CAMP reported    to OEQ that,   during
this period,     1,534 elderly    poor had participated    in the pro-
gram.

     In November 1970 OEC awarded a grant of $40,000            to
CAMP to continue the program through June 1971.

HOUSING PROGRAM

        During the 1969-70 grant year, CAMP expended about
$44,000 to operate a housing program, the primary purpose
of which was to encourage migrant families         to settle   in one
locality     and thereby have an opportunity     to seek year-round
employment, to provide their children        with a normal education,
and to become citizens     in the local community and thus q-ual-
ify for community benefits.

     Most of the funds were expended to operate a CAMP-
sponsored housing project  that was established    in March
1968 under section 221(h) of the National    Housing Act, as
amended (12 U.S,C. 1715).
       In July 1968 the housing project    borrowed $73,700 from
a lending institution    to rehabilitate   and convert an apart-
ment building    into 72 two-, three-,   and four-bedroom    town-
houses to be sold to migrant farm laborers.         The loan was
insured by the Federal Housing Administration,        Department of
Housing and Urban Development,

        In the spring of 1969, the rehabilitation     of the units
Was    completed and the housing project    began taking applica-
tions from CAMPes program participants       for the purchase of
the townhouses.       The amount of the purchase price of the
townhouses was loaned to the residents         by the lending in-
stitution,     and the loans were insured by the Federal


                                  12
Housing   Administration,     The residents*   loan applications
were approved by CM,       the lending institution,     and the Fed-
eral Housing Administration.



      c    entered into a cost-reimbursable          contract  not to
exceed $50,000 with the Office of Education,           Department of
Health,  Education,  and Welfare,      for a  talent   search  program
to be operated during the 1969-70 grant year.             The program
was designed to assist migrant youths from the seventh grade
through college to continue     their education and to encourage
migrant youths who had dropped out of school to reenter
school or seek vocational    training,       CAMP expenditures     under
the program were about $43,000s

      CAMPss efforts        under the talent      search program were di-
rected toward (1) assisting           youths to obtain high school
equivalency    certificates       through programs funded by OEO and
operated by various colleges,            (2) referring   students with
high potential      but low achievement to colleges,          under an
Office of Education-sponsored            college education achievement
program, and (3) providing           students with college placement
services.

       The talent   search annual     report    for the year ended
June 1, 1970, showed that,, of         3,614 students contacted    by
CAMP, 204 had been placed in         the high school equivalency
program, 174 had been placed         in college,     and 673 had been
referred   to colleges    and were     awaiting    acceptance and ap-
proval of financial      aid,

      The Office of Education awarded UN? a cost-reimbursable               ,
contract  for about $64,000 to continue the program through
May 31, 1971.
                                  CHAPTER 3

    IMPROVEHENTSNEEDXD IN SELECTING PROGRAMPARTICIPANTS

        The purpose of CAiiss programs was to assist poor mi-
grants and seasonal farmworkers               and their families      to im-
prove their living         conditions      and to develop the necessary
s'kills   for a productive        and self-sufficient        life   in an in-
creasingly      complex and technological           society,      In selecting
persons to participate          in its training       programs involving
stipends and in its housing project,               however, CAMP had not
established      policies     and procedures to inform interview
counselors      at the regional       offices    of applicable      QEO eligi-
bility    requirements,        As a result,      a large number of pro-
gram participants         were selected by CAMP who were not mi-
grants or seasonal farmworkers.

        The high incidence of ineligible            participants      detracted
from the effectiveness         of CAMPDs programs.            If CAMPhad fol-
lowed applicable     eligibility       requirements,        the ineligible
participants    who were poor would not have been without help
because other programs were available               under which those who
were not migrants or seasonal farmworkers                 could have re-
ceived similartypesof          assistance     offered by CAMP.

TRAINING PROGRAMSINVOLVING STIPENDS

        Of the 308 persons enrolled        in training    programs dur-
ing the 1969-70 grant years CAMP paid stipends totaling
about $71,300 to 218 participants,            or 71 percent,     who, in
our opinion,       were not eligible   for participation        in the
programs under applicable         QEO criteria.       In addition,      CAMP
spent about $8,000 for travel,         meals, and housing for in-
eligible     participants   in the mechanics-training          project.

       Special conditions   of OEO migrant and seasonal farm-
worker program grants under title      III,  part B of the Econo-
mic Opportunity    Act, as amended, restrict     eligibility for
enrollment    in the programs to migrant and other seasonally
employed agricultural     families who, during the year preced-
ing the commencement of the program have
       --earned at Least 50 percent         of their   total   income as
          agricultural employees,

       --been employed only on a seasonal          basis    and not by one
          employer for the entire calendar         year,    and

       --earned     incomes below the poverty      level    as defined   by
          OEO*

In addition, the participants     must have been classified   ac-
cording to OEO definition     as migrant farmworkers  or farm
laborers.

        OEQ grant agreements required  that, for           persons to be
eligible    to participate  in programs involving           stipends, they
must be:

       1, Migrant or seasonal farmworkers  who are unemployed
          at the time they enter the program.

       2, Heads of households,   The head of a household shall
          be a male unless there is no adult male in the
          household.

      Cur review showed that 218 persons who had received
stipends while enrolled     in training  programs were not eli-
gible to participate     in the programs for one or more of the
reasons listed    below,

              Reason for    ineligibility                      Number

       Not a migrant or seasonal farmwor'ker
       Not head of household
       Employed at the time of entering   the
         program

            Total                                                 218a

aC&P records for 14 other participants   did not contain suf-
 ficient information to determine whether they were eligible,

       Of the 218 ineligible       participants,     116 were ineligible
for   more than one reason,       but the three    reasons shown above
were most common, Fo~f.Iowin~ are examples of ineligible
participants in the various--training programs,

       --A participant    in the mechanics-training      project  who
          received stipends    of $495, was employed by a bus earn-
          pany prior to participating      in the project    and had
          not been a farmworker,      Also, he lived with his par-
          ents and was not the head of the household,

       --Another   participant in the mechanics-training      proj-
          ect, who received stipends of $819, was employed by
          a lawn-mowing service prior to participating       in the
          project  and had not been a farmworker,      Also, he was
          not the head of the household.

       --A participant    in the automobile-reconditioning     proj-
          ect, who received    stipends of $554, had not been a
          farmworker,  was not head of the household,      and was
          employed prior to participating      in the project,

       We are aware that, of the 218 ineligible           participants,
73 were paid stipends under the OEO demonstration               grant au-
thorized   by title  II, part C of the Economic Opportunity
Act, as amended, and that this part of the act does not con-
tain the specific    eligibility    restrictions      contained in ti-
tle III,   part B of the act,      The purpose of demonstration
projects,   however, is to "test      or assist     in the development
of new approaches or methods that will           aid in overcoming
special problems,tq in this case, the training            of migrant and
seasonal farmworkers      to develop the necessary skills           to ob-
tain permanent employment,

        In our opinion,      it is not appropriate        under a demon-
stration    project    to use significant     resources on activities
which, after the pilot          stage had been completed, would not
be appropriate      for funding on a continuing           basis under other
sections    of the Economic Opportunity         Act,     We believe that
0EO"s eligibility        requirements   for title    III,    part B pro-
grams should also be applicable           to persons who participated
in the demonstration         project,

      CAMP's executive      director   disagreed with our finding
on ineligible    participants,       He stated that the information
on the participants       contained   in CAMPBs files  had been what
the participants     wanted to show on their application   for en-
rollment    in a program and was not necessarily    valid.   He
stated also that many of the participants       did not want to
show that they were farmworkers.

      We interviewed    20 program participants        receiving     sti-
pends, who were readily      available   for interviews        at the time
of our fieldwork,    to determine whether the information             on
their applications     was correct0    In general,       they confirmed
that the information     in their application      files     was correct
and not misleading     as claimed by the executive          director     of
cm.

       The executive   director also made the following            comments
concerning our basis for concluding     that participants            were
ineligible   for training,

      Not a migrant or seasonal farmworker--the               executive     di-
      rector    stated that,       in certain     areas of southern Flor-
      ida, farmwor'k was the only employment available                for
      poor people.        In these areas there was no need for CAMP
      to verify     the eligibility       of the applicant,     because he
      was either      a farmworker or a potential         farmworker,     re-
      gardless     of the information         furnished  on his applica-
      tion for CAplp programs,

      CAMP officials     could not provide us with supporting     data
on the percentage of residents      who lived in these areas of
southern Florida     that were farmworkers.      They stated that
they had obtained the information       verbally   over the telephone
from the Department of Labor.

      We subsequently      contacted     the Farm Labor Area supervi-
sor in Miami, Florida,        who was responsible       for Department
of Labor activities       in most of the areas serviced by CAMP.
The supervisor     informed us that in certain          small sections
in southern Florida--areas         of less than a square mile each--
there would be concentrations           of farmworkers     as high as
50 percent of the population,            The supervisor     also furnished
us with employment statistics           which showed that,      for eight of
of the 10 counties       serviced by CAMP, farmworkers,           including
migrant and seasonal farmworkers,            accounted for less than
10 percent of the total         population    even dur%ng the peak pe-
riod of farmworker      employment,


                                     17
      Participant      was not a head of household--the        executive
      director    chillenged   the definition      of a head of house-
      hold in CEO's eligibility      criteria.        He stated that,
      when there was only a female adult in the family and
      most of the income was contributed           by the children,     the
      adult female and the children         contributing     to the fam-
      ily income would be considered the head of the house-
      hold and that QEO's definition          of a head of household
      would not apply, that is, there was no one head of
      household,

        In February 1971 QEQ officials      informed us that in De-
cember 1969 OEO relaxed its head of household criteria             for
use in deciding whether participants          were eligible   for
training    stipends,     We found no evidence however, that the
special conditions       of CAMPDs grant were modified for the
1969-70 program year, the period covered by our review.               Un-
der the revised special grant conditions           for migrant and
seasonal farmworker programs, training          stipends may be pro-
vided either     to the head of household or to a child of the
household who would benefit       more from the training      than the
head of household,        Some of the participants      whom we consid-
ered ineligible       because they were not a head of household
may have been eligible       under the revised guidelines.

      Participant  was not unemployed--the   executive  director
      stated that all participants   were unemployed at the time
      they entered the program.    He said that they might have
      been employed the minute before entering     the program,
      but when entering  the program they became unemployed.

       Cur interpretation      of OEO's eligibility criteria as
set forth     in its grant agreements is that persons must be
unemployed prior       to acceptance into training  programs in-
volving   stipends,
HQUSING PRQJECT

       None of the 72 residents      'hiving in the CAMP-sponsored
housing project    met 0   eligibility       criteria because 61 res-
idents were not migrant or seasonal farmworkers          and 11 res-
idents earned incomes in excess of the prescribed           limitations.
Following   are the income and other characteristics          of two
ineligible   residents.

      1. The credit  report     and verification    of employment
         of the head of a household of a family of five showed
         that he had an annual income of $5,700 and had been
         employed as a plumberps helper for over 8 years when
         he applied to purchase an apartment.           OlZQ"s income
         limitation  for a family of five at the time of ap-
         plication  was $3,900 for a nonfarm family and
         $2,800 for a farm family.          Since he was neither    a
         migrant nor seasonal farmworker         and his income ex-
         ceeded the limitation,      he was not eligible      to partic-
         ipate in the housing project.

      2. The mortgage application,         credit report,  and verifi-
         cation of employment for the head of a household of
         a family of six showed that he had an annual income
         of $5,240 and had been working as a construction
         worker for 14 months when he applied to purchase an
         apartment.    0 8s income limitation         for a family
         of s9x at the time of application         was $4,400 for a
         nonfarm family and $3,100 for a farm family.             Since
         he was neither    a migrant      nor seasonal farmworker      and
         his income exceeded the limitation,          he was not eli-
         gible to participate        in the housing project.

      The executive   director, C&P, agreed that some of the
occupants of the housing project    were not migrant and seasonal
farmworkers  according to information    shown in the credit   re-
ports and 'Loan applications.    He stated,   however, that the
information   shown was the type of information    required  by the
Federal Housing Administration    before it would approve loans
for the purchase of units in the housing project.

      Although the executive   director   indicated   that the res-
idents of the housing project     included misleading     informa-
tion in their loan applications,      we noted that the
    information  contained in the applications     had been verified
    by the C&&P housing staff   and by cred%t bureaus before the
    applications  were submitted to the lending institution        and
    to the Federal Housing Administration      for review and approval,

           With regard to income limitations,     the executive  di-
    rector    stated that most of the migrants and seasonal farm-
    workers did not know how much they earned each year because
    they did not keep records and the growers or farmowners did
    not give them earnings statements.        He stated also that in
    1 week farmworkers might earn $150 and the next week they
    might earn nothing.

    CONCLUSIONS

           CAPE' needs to improve its policies         and procedures for
    ensuring that persons selected for participation               in CAPP
    programs are migrant and seasonal farmworkers               and otherwise
    meet OEO eligibility       requirements.      Further,    bec,ause of the
    high incidence     of ineligible     persons participating        in the
    training  programs and CAHPps lack of emphasis on ensuring
    that persons are eligible         for enrollment,      OEXI should closely
    monitor the actions taken by CAMP to ensure that Federal
    funds are expended to assist only those persons for whom CAMP
    programs were intended.

           The high inch_dence of ineligible  participants  detracts
    from the effectiveness    of CAMPss programs in providing    as-
    sistance to the sizable migrant and seasonal farmworker
    population    in southern Florida.

    WECOMIENDATION

          We recormnend that the Director, OEO, through the Office
    of Operations,   ensure that CAMP, in selecting  participants
!   for its various programs, adheres to OEC eligibility       re-
    quirements,




                                      20
                             CHAPTER4

   IMPROVEMENTSNEEDED IN ADMINISTRATION OF GRANT FUNDS

      Improvements were needed in CAMP's accounting      for em-
ployee leave and compenstitory  time, travel;    purchases of
supplies and equipment, and accountable     property.    We noted
some expenditures  which had not been budgeted or authorized
by OEO. Also controls   over program revenues had not been
adequate.

PAYROLLS AND RELATED COSTS

      CAMP reported  expenditures of about $616,000 for pay-
rolls  and related  costs for OEO and Office of Education pro-
grams during the 1969-70 grant year.     This amount repre-
sented about 61 percent of the total grant fund expenditures
of about $1 million   recorded by CAMP.

       We reviewed payroll     and related    costs of about $49,000
incurred    for administration    and operation      of CAMP programs
and activities.      In general,   these payroll      costs had been
properly    supported and accurately       computed.

       CAMP and OEO regulations require   that all absences for
compensatory and annual leave be requested,     approved, and
recorded in advance of such leave.      We ndted certain  in-
stances in which CAMP had not been adhering to the regula-
tions.   For example:

     1. Compensatory leave of 4,115 hours, valued at $9,711,
        was taken by 79 employees.        We estimate    that, for
        3,200 hours valued at $7,500, leave requests were
        not prepared as required       by regulations.      CAMPBs
        director   of fiscal   affairs   stated that all employees
        would henceforth     be required    to submit written   re-
        quests before taking compensatory leave.
                 *
     2. Fayments for accrued annual leave of 674 hours, val-
        ued at $1,963, were made to 12 employees who were
        continuing   their employment with CAMP. CAMP regula-
        tions provide for payment for accrued annual leave
        only upon termination      of employment.      In June 1970


                                   21
         OEQ directed that the practice  of making payments
         for accrued annual leave to those employees who were
         continuing employment with CAMP be discontinued.

      3. Mathematical      errors   in recording     the leave of seven
         employees resulted       in an overstatement       of accrued
         leave of 47 hours.        CN's     director     of fiscal  af-
         fairs     stated that a double-check        procedure had been
         initiated      to ensure the accuracy of postings         to
         leave records.

TRAVEL

      CAMP reported    expenditures  of about $80,000 for travel
and local transportation      during grant year 1969-70, which
was about 8 percent of its total recorded expenditures       for
the period.

        CAMI?"s travel  policy requires    that travel  be authorized
and approved prior      to any travel    by its employees outside
their assigned region.        We examined the travel    vouchers to-
taling    about $10,000 for 128 trips made by 13 CAMP employees
outside    their regions and noted 44 trips       for which the files
did not contain authorizations        for travel.    For another 24
trips,    a reason for the travel     was not stated on the autho-
rization     form.

      Travel costs for secretarial   employees totaled    over
$4,000 during the period.    CAMP officials    stated that the
purpose of this travel   was to allow the secretaries     to at-
tend workshops, staff meetings,    and conferences.

     In a June 25, 1970, letter        to CAMP discussing    travel
by secretaries, OEO stated that:

     "-k-k* The use of travel    funds by clerical     person-
     nel seems excessive and the justification          for it
     is questionable.     Clerical    travel should    not be
     permitted   in the future."

        CAMP disagreed with QEQ on the necessity    for travel   by
the clerical      staff but advised OEO on July 14, 1970, that
clerical     personnel would be invited  to meetings requiring
travel    only when their attendance was necessary.     We noted


                                  22
that from July 14 to October 30, 1970, travel                  costs   for nine
secretaries  to attend meetings and workshops                totaled     $1,052.

      With regard to the practice       of secretarial    travel,    the
executive  director    of CAMP stated that it would be contin-
ued because he thought it was necessary.          He stated also
that CAMP secretaries      performed functions     not usually,per-
formed by secretaries,      such as filling    out forms and reports,
and that the workshops were necessary to teach them how to
do this; otherwise,      supervisory  personnel would have to take
time off from their other duties to instruct           the secretaries
on these matters.

PROCUREMENT

       During the 1969-70 grant year, CAMP's procurement       costs
for supplies,    equipment,  space, and other items totaled
about $100,000, or about 10 percent of its total expendi-
tures.     Our examination  of 163 procurement actions involving
$31,570 revealed     that 79 procurements  totaling    $15,515 were
not supported by adequate requisitions      or purchase orders
as provided for in CAMP's Administrative       Manual.

        In December 1970 the director    of fiscal   affairs    agreed
that deficiencies    had existed   in the preparation      of requisi-
tions and purchase orders for procurements,        but that the
situation    had been corrected  and that the purchasing        proce-
dures contained    in CAMP's Administrative     Manual were being
followed.

CONTROLSOVER ACCOUNTABLEPROPERTY

       As of June 24, 1970, CAMP had property      on hand valued
at about $76,000.      The provisions   of CAMP's Administrative
Manual were not followed      in taking physical   inventories.
Also, property     was not adequately   safeguarded and effec-
tively   utilized,   or disposed of, in accordance with proce-
dures prescribed 8 in the manual.

       Cm"s     Administrative      Manual provides      that periodic
inventories     be taken by regional        office   personnel and veri-
fied by central     office     personnel.      Pnysical    inventories,
however, were taken personally            by the central      office's      di-
rector    of fiscal   affairs,     who was also the property           officer.


                                       23
To maintain    proper internal  control over property,        inven-
tories   should be taken by persons independent of the prop-
erty office    and accounting  office.  Therefore    inventories
of CAMP's property     should be taken by regional     office     per-
sonnel or by persons other than the director       of fiscal       af-
fairs.

       The director of fiscal    affairs   agreed that     internal
controls   would be strengthened      if the inventories      were taken
by someone else.

        We noted evidence of deterioration        and inadequate uti-
lization    of property   at the regional    offices.     For example,
at the Mr. Kar Kleen facility,        a truck and two motor scoot-
ers valued at $2,800 had not been used for over 6 months
and were deteriorating      from exposure to the weather.         At the
regional    office   in Homestead, we noted in September 1970
that a tractor      and a 44-passenger bus had been exposed to
the weather and had begun to rust and deteriorate.              This
property,     valued at $1,580, had not been used after late
1969 when the farm training       project   to which the property
was assigned was terminated.

      We believe    that property   in excess of CAMP's needs
should be identified     and transferred    to the General Services
Administration    for disposal.

      CANT?employees were permitted      to drive CAMP vehicles
to their homes at night and on weekends, reportedly          so that
the vehicles would be protected      from possible   theft or van-
dalism.   During our review one vehicle was involved in an
accident while being used by a CAMP employee for personal
reasons.    T'he employee informed us that he had sometimes
operated the vehicle     for his personal use.     We believe that
CAMP should not permit its employees to use CAMP vehicles
for other than business purposes.




                                    24
     During the 1969-70 grant year9 CAMP expended grant
funds of about SE3,QOO budgeted for temporary housing to
make payments on mortgages and for utilities    relating    to its
permanent housing project.   Under the special conditions      of
QE08s grant, C&V was required   to obtain written     approval
from OEO before disbursing  any of these funds, which were
supposed to be used only for emergency temporary housing
for migrants and seasonal farmworkers.

       c      made the mortgage payments because some housing
units were unoccupied and because some slow-paying       occupants
of other units were renting     until their applications   to pur-
chase the units were approved by the Federal Housing Ad-
ministration,

      c     did not obtain -written approval from OEO prior        to
using the emergency housing funds.         On day 25, 1970, about
the end of its grant year, CAMP requested permission        from
0E0 to write   off the $l3,000    as uncollectible.    CAMP justi-
fied the write-off    as follows:

     I'***   We feel  that the cost of Vwriting      off'    the
     loan can be justified       in that it was a cost of
     simply getting     migrants    into adequate housing;
     not on a temporary basis but on a permanent
     basis.    Seventy-two     (72) migrant families      rep-
     resenting   approximately     475 persons own their
     homes and are accruing equity rather than hold-
     ing a handful of rent receipts.,        These persons
     have truly   left    the migrant stream.!'

     Of the 72 residents     occupying the housing project,       61
were not migrants   or seasonal farmworkers       and 11 had incomes
in excess of CEO limitations      and therefore    were not eligible
for housing assistance    under OEO's eligibility      criteria.
(See pe 19.1

      On August 11, 1970, the Director,   Migrants Division,
OEXI, approved C    Bs request but made the following    stipula-
tion.



                                   25
      stLet me emphasize that despite our approval,     we
      nevertheless  have serious reservations     about the
      judgment exercised     by CAMP in this matter.   There-
      fore, we will expect in the future where program-
      matic and financial     matters are not clearly  within
       the scope of existing    OEO instructions  and guide-
      lines that you will consult with this office      be-
      fore taking actionegQ

        In January 1970 CAMP obtained OEO approval to use
$16,000 of its emergency housing funds to establish           guaran-
teed loan funds with federally        chartered  credit  unions to
loan money to migrants       for temporary and emergency housing,
CAMP entered into agreements with three credit          unions, which
provided for making guaranteed loans not to exceed $125 to
eligible    program participants.      CAMP selected the prospec-
tive borrowers and authorized       the credit   unions to make the
loans.

      The loans made by the credit unions were not restricted,
however, to temporary and emergency housing loans.     As of
September 1970 the credit  unions made 18 loans totaling
$2,170, of which only three loans totaling   $375 were for
temporary or emergency housing.

        CAMP officials       informed us that the restriction  that
the loans be used only for emergency and temporary housing
had been removed by OEO, but they were unable to furnish            us
with documentation          or correspondence  to this effect.  OEO
headquarters      officials      informed us, however, that the re-
striction    on the use of the $16,000 for only emergency and
temporary housing loans had not been removed.

ACCOUNTING FOR PROGRAMREVENUES

       During the 1969-70 grant year, CAMP received income of
over $29,000 from program operations         in the regional     offices.
The regional     offices, however, did not maintain      detailed
financial    records accounting     for sales and receipts     for some
programs and did not record all sales for other programs.
Also revenues from some program operations         were not for-
warded to CAiWBs central      office.



                                  26
       We could not verify    the amount of Mr. Kar Kleen sales
because 206 sales invoices       could not be located.    Our exam-
ination   of the sales journal     showed that some prenumbered
sales invoices had not been accounted for and that others
had been voided after being entered in the sales journal.
Accounting records of the automobile-reconditioning          facility
in Fort Lauderdale could not be located,        but, on the basis
of available    sales invoices,    we estimated  that sales were
about $300 more than shown by the central        office  records.

      For the period September 30 to November 5, 1969, the
cash receipts    journal for Mr. Kar Kleen showed receipts          of
$1,045; however, records at the central      office    showed that
only $874 in funds were forwarded to the central          office,
Conversely,   for December 15 to 18, 1969, the central          offZce
records showed receipts     of $155 in excess of the amount
recorded in the Mr. Kar Kleen cash receipts        journal.

       The director     sf the Fort Myers region informed us that
the Fort IMyers fishing       cooperative       had some revenues from
harvesting    fish and crabs and that these funds had been
distributed     to trainees    and workers of the fishing          coopera-
tive.     The director    of fiscal     affairs    informed us that he
was aware that the fishing          cooperative      had revenues of abcut
$300 to $400 and acknowledged that the funds had not been
forwarded to the central        office.       He stated,    however, that
he thought that the funds had been used to offset                the ex-
penses of the program and that he was not aware that the
funds had been distributed          to the trainees      and workers.

      Because of the lack      of adequate records, we were unable
to determine whether all       revenues had been used for program
purposes.

CONCLUSIONS

       Improvements are needed in CAMP1s controls           over and ad-
ministration     of grant funds.        CAMP has taken certain   actions
to correct     some of the weaknesses in the administration          of
grant funds.       Additional     actions,  however, are needed to im-
prove the accounting        for travel,    property,  and revenues and
to avoid expenditures         which have not been budgeted, autho-
rized,     or approved by QEQ in advance.,
      We recommend that    the Director,         OW, through the Office
of Operations,   closely   monitor        CMss    financial management
practices    to ensure that corrective    actions regarding    travel
practices;     control over, and use of, accountable    property;
fund expenditures;     and acsounting  for program revenues are
implemented.




                                     28
                                CHAPTER 5

                            SCOPE OF REVIEW

      Our review was conducted primarily      at the CAMP central
and regional   offices   in Florida and included an examination
of selected transactions     under the following    Federal grants
and contract:

     Program or activity                              Period         Amount

OEO migrant program grant
   (CG 0771-E/0)                            6- l-69     to 5-31-70   $736,000
      Conduct and administration
      Educational   training
      Emergency and temporary
        housing
      Credit unions
OEO job development,       training
   and placement pilot       project
   (CG 8216-B/0)                            5-12-69     to 5-12-70   250,000
OEO senior opportunities         and
   services    (CG 8328-B/0)                7- 1-69 to 6-30-70         40,000
Office of Education migrant
   education talent      search
   contract    [OEC-0-9-716057-
  4274(417)]                                6- l-69     to 5-31-70     50,000

       Our review was directed     toward (1) inquiring     into the
nature and scope of CAMP program activities,          (2) determining
whether participants     enrolled    in certain   CAMP programs and
residents    in its housing project     were eligible    to receive
such assistance,     and (3) evaluating     CAMP's procedures and
controls   over expenditures     and property.

       We reviewed pertinent      legislation,  OEO policies   and
procedures p grant agreements,        and the contract  with the Of-
fice of Education.        We examined CAMP records and interviewed
individuals     associated   with CAMP, OEO, Office of Education,
and certain     other persons whom we believed had information
pertaining    to the matters under review.




                                       29
APPENDIXES




   31
.
                                                                                                           APPENDIX I


                                       FUNDS RECEIVED BY CAMP AND

                       RELATED EXPENDITURES FOR THE 1969-70                         GRANT YEAR


                                                                                                                 Office    of
                                                                                                                 Education
                                                                     Total               OEO grants               contract
    FUNDS RECEIVED:
        Carry-over  from prior               year              $       15,734            $       15,734           $      -
        New grant funds                                            1,061,834                 1.011,834                50,000
             Total     funds     received                          1,077,568                 1,027,568                50,000
         Program     revenues                                          29,070                    29,070

             Total     funds     available                     1,106,638                     1,056.638             50,000

    EXPENDITURES:
        Personnel                                                    616,492                   589,371             27,121
        Consultant     and contract  services                          3,790                     3,790
        Travel                                                        79,841                    72,073                7,768
        Space cost and rental                                         30,989                    30,989
        Consumable supplies                                           13,031                    10,980                2,051
        Rental,    lease, and purchase of
           equipment                                                  50,990                    50,545                   445
        Stipends                                                     102,398                   102,398
        Other costsa                                                 135,182                   129,574                5,608

             Total     expenditures                                1,032,713                   989.720b            42,993

    UNEXPENDED BALANCE                                         $       73,925c           $       66,918'          $ 7,007

    aOther costs include     telephone,  utilities,  insurance,     repairs,     and costs
      associated    with the operation  of training  programs and the housing proj-
      ect.
    b
      Includes   program revenue of $29,070 which was applied         as offsets    to pro-
      gram expenses when received.      The net expenditure     from OEO grants is
      $960,650.

    'Includes  $16,000         on deposit       with   three       Federal      credit        unions       for   guaran-
      teed loan funds.




                                                          33
                 SPaLmIES OF PRINCIPAL CAMP OFFICIALS

                                AS OF JULY 1, 1970


                           Position                                   Annual-salary

Executive       director                                                $18,020

Director,       program operationsa                                      15,651

Director,       fiscal      affairs                                      12,020

Public      relations                                                      9,010

Housing      director                                                    10,000

Director,     talent       search                                        12,135

Counselor,       talent       search                                     10,176

Director,       aging                                                    10,812

Regional      director,        Fort    Myers,     Florida                11,130

Regional      director,        Belle    Glade,        Florida            12,190

Regional      director,        Boynton    Beach, Florida                  10,000

Regional      director,        Pompano Beach, Florida                    10,812

Regional      director,        Homestead,        Florida                 10,454

aAlso regional           director,      Plant     City,     Florida




                                                 34
                                                                         APPENDIX III


                                       MEMBERSOF THE

                                  CAMP BOARDOF DIRECTORS

                                      AS OF JULY 1, 1970

                                                             Renresentation

Rev, Samuel W. George,                          Ministerial    Association
  president                                     National    Association    for the
                                                Advancement of Colored People

Mr. Willie            Cohen                     Farmworkers

Mrs.      R. W. Glasner                         Florida   Council     on Human
                                                Relations

Mrs.      Bessie          Brunt                 National Association  for the
                                                Advancement of Colored People

Mrs. Willard               Findling             Community at large

Rev. C. D. Lazier                               National Association  for the
                                                Advancement of Colored People

Mr. Robert            Kaufman                   Legal      services

Mr. August VandenBosche                         Farmworkers

Mr. Albert            Lee                       Farmworkers

Rev. John Freund                                Catholic      Archdiocese     of Miami

Mrs. Juanita               Barrerea             Farmworkers

Mr. Elijah            Boone                     Farmworkers

Mrs.      Ethel       Williams                  Farmworkers

Mrs.      Louise          Buie                  National Association  for the
                                                Advancement of Colored People



U.S. GAO, Wash.,   D.C.

                                              3.5