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Authority To Pay Grantees for Architectural and Engineering Costs

B-197699 Jun 03, 1980
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Highlights

An agency official asked whether the agency has the authority to pay grantees for architectural and engineering costs incurred by grantees prior to, or in conjunction with, the preparation of pre-application grant costs. These costs, which constitute a major factor in establishing estimated project costs and in determining the amount of Federal assistance requested, were incurred after the date of the approval of the first appropriation for the program. The purpose of the program is the rehabilitation of critically needed urban recreation areas and programs. It would stimulate local governments to revitalize their park and recreation systems. In a review of the legislative history, GAO found no indication of congressional intent to limit allowable grant costs in this matter. The Secretary of the agency has the authority to permit payment for pre-application costs if he considers them appropriate and in the public interest. GAO has no objection to payment of the costs in question.

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