Financial Records and Documents of National Organizations Supporting Antipoverty Work

HRD-77-158: Published: Oct 7, 1977. Publicly Released: Oct 7, 1977.

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The Community Services Administration (CSA) needs to increase control over grantee funds going to nongrantee organizations whose purpose is to support the Government's antipoverty effort.

Review of the financial records and documents of five national organizations that are not Federal grantees and the National Center for Community Action, a private nonprofit organization that is a grantee of CSA, showed that: some CSA grant funds were ultimately channelled into the lobbying organizations; the financial and administrative activities of the six organizations were closely controlled through interlocking directorates and executive positions; the financial controls necessary for the prudent expenditure of funds were not maintained for the nongrantee organizations; and no mechanisms were in use to evaluate the worth of nongrantee organization functions to the antipoverty effort.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Community Services Administration (CSA) should establish basic operational criteria for adoption by nongrantee organizations that indirectly receive CSA funds requiring: published annual audits by certified public accountants, mechanisms for the CSA to assess the performance and contribution of organization functions to the antipoverty effort, clear and concise records of travel and other organizational expenditures in support of community action agencies' efforts, and provision for Federal access to records of the organizations. CSA should withhold approval of financial support by grantees of any organization not in conformance with its operational criteria.

    Agency Affected:

 

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