[Comments on Grantee's Compliance with Appropriations Act]

B-258000: Published: Aug 31, 1994. Publicly Released: Aug 31, 1994.

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Pursuant to a congressional request, GAO commented on: (1) a grantee's refusal to disburse part of its grant funds to another foundation for tree planting projects; and (2) whether the grantee's use of grant funds to pay legal and professional fees complied with statutory provisions. GAO noted that: (1) the appropriation provision that designated the grant funds to another foundation was ambiguous; (2) there was no legal authority permitting the recapture of grant funds legally disbursed to the grantee; (3) the foundation's grant should have been disbersed from no-year appropriated funds administered by the Forest Service for state and private forestry projects; and (4) the grantee's use of grant funds to pay for legal and administrative expenses complied with statutory requirements.

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