Comments on Availability of Unspent FY 1970 Grant Funds for New Grantee to Complete Unfinished Project

The Law Enforcement Assistance Administration requested a decision on whether the unexpended balance of grant funds, available for obligation in fiscal year (FY) 1970 and originally obligated pursuant to a grant which was in default, was available in the current FY to engage a new grantee to complete the unfinished project. GAO noted that the: (1) National Institute of Law Enforcement and Criminal Justice awarded the original grant to the University of Wisconsin in response to a bona fide need then existing and executed the grant prior to the expiration of the period of availability for obligation of 1970 FY funds, and the need for completing the project continued to exist; (2) grant agreement created a contractual relationship between the United States and the grantee and a previous GAO decision held that funds from a prior FY obligated under the original contract could be used for a replacement contract to complete the unfinished work; and (3) balance of funds remaining from the amount originally granted to the University of Wisconsin could be used in funding a grant to Northwestern University to complete the unfinished project work.