District of Columbia Issues:

D.C. Workforce Reductions and Related Funding Issues

GAO-02-128R: Published: Nov 5, 2001. Publicly Released: Nov 5, 2001.


Jeanette M. Franzel
(202) 512-9471


Office of Public Affairs
(202) 512-4800

This report reviews whether the DC government had the authority to use $18 million from the Financial Responsibility and Management Assistance Authority for severance payments during fiscal year 2000. GAO concludes that the District lacked the authority to use the $18 million in Section 157 funding for the fiscal year 2000 workforce reduction. District officials told GAO that they believed that they had the Financial Authority's approval to use 157 funding and, consequently, spent $14.3 million during fiscal year 2000 on workforce reduction activities. However, the District could not document that the Financial Authority had certified compliance with the requirements of Section 157 to authorize the use of the funds. The Financial Authority maintains that it did not approve the use of the funds by the District and had denied in writing the District's request for reimbursement for severance payments. The District accounted for the workforce reduction costs during fiscal year 2000 as if it had access to the Section 157 funding. The District concluded that, had the Section 157 funding been unavailable, one agency would have ended fiscal year 2000 with an operating deficit and two agencies would have experienced increases in their existing operating deficits. As a result, the District may have potential Anti-Deficiency Act violations.

Status Legend:

More Info
  • Review Pending-GAO has not yet assessed implementation status.
  • Open-Actions to satisfy the intent of the recommendation have not been taken or are being planned, or actions that partially satisfy the intent of the recommendation have been taken.
  • Closed-implemented-Actions that satisfy the intent of the recommendation have been taken.
  • Closed-not implemented-While the intent of the recommendation has not been satisfied, time or circumstances have rendered the recommendation invalid.
    • Review Pending
    • Open
    • Closed - implemented
    • Closed - not implemented

    Recommendation for Executive Action

    Recommendation: The Mayor of the District of Columbia should perform the required investigation to determine if the operating deficits resulting from reversing its inappropriate use of the Section 157 authority would result in or contribute to any potential Anti-Deficiency Act violations and report as necessary, to disclose any such violations.

    Agency Affected: District of Columbia: Executive Office of the Mayor

    Status: Open

    Comments: The District CFO's Office of Integrity and Oversight has been unable to provide GAO status information from the respective District agencies on the District Government's efforts to address this recommendation.

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