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Need To Strengthen Audit Oversight on Existing and Future Block Grant Programs

AFMD-82-25 Published: Nov 13, 1981. Publicly Released: Nov 27, 1981.
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Highlights

GAO reviewed the title XX social services grant program to assess the quality and effectiveness of the States' financial management control systems in providing adequate accountability over Federal funds. The grant management and administrative controls in four States with title XX awards were reviewed for fiscal year 1979. GAO believes that the results of the review will assist the Senate Subcommittee on Intergovernmental Relations in its current deliberations on proposed legislation designed to strengthen audit oversight on existing and future block grant programs.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
The Subcommittee on Intergovernmental Relations, Senate Committee on Governmental Affairs should give consideration to expanding the audit and oversight provisions contained in the cross-cutting legislation to include all block grants under the Omnibus Budget Reconciliation Act.
Closed – Not Implemented
A legislative proposal is unlikely in the Senate. GAO will suggest to the House Government Operations committee that the recommendation be incorporated in H.R. 769, a bill to provide uniform financial management and audit standards for Federal assistance programs.
The Subcommittee on Intergovernmental Relations, Senate Committee on Governmental Affairs should give consideration to making the GAO yellow book standards for financial and compliance audits mandatory for State, local, and independent public accountant audits of block grant programs by deleting the phrase "insofar as is practicable."
Closed – Not Implemented
Consideration is unlikely in the Senate. GAO will suggest to the House Committee on Government Operations that the recommendation be incorporated into H.R. 769, a bill to provide uniform financial management and audit standards for Federal assistance programs.
The Subcommittee on Intergovernmental Relations, Senate Committee on Governmental Affairs should give consideration to requiring the establishment of an audit quality review process at the Federal level to ensure that the audit organizations, reports, and the audit work itself meet the GAO yellow book standards.
Closed – Not Implemented
Consideration is unlikely in the Senate. GAO will suggest to the House Committee on Government Operations that the recommendation be incorporated into H.R. 769, a bill to provide uniform financial management and audit standards for Federal assistance programs.
The Subcommittee on Intergovernmental Relations, Senate Committee on Governmental Affairs should give consideration to including subrecipients under the audit requirements of the proposed amendments to the cross-cutting legislation and clarifying the definition of subrecipients to include purchase-of-service contractors.
Closed – Not Implemented
Consideration is unlikely in the Senate. GAO will suggest to the House Committee on Government Operations that the recommendation be incorporated into H.R. 769, a bill to provide uniform financial management and audit standards for Federal assistance programs.

Full Report

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Topics

Audit oversightBlock grantsCongressional oversightFederal fundsstate relationsFinancial management systemsInternal controlsProgram managementPublic assistance programsState-administered programs