Comments on California State Economic Opportunity Office's Compliance with Non-Federal Contributions Requirements

GAO commented on the California State Economic Opportunity Office's (CSEOO) failure to comply with nonfederal contribution requirements for program year 1972. GAO noted that: (1) CSEOO nonfederal contributions for 1972 may have been deficient by $143,585 because of questionable claims; (2) $376,649 of the $482,500 in nonfederal contributions that CSEOO received for 1972 were questionable because of inappropriate claims or improper valuation; (3) the Office of Economic Opportunity (OEO) regulation requiring the 20-percent nonfederal contribution constituted a statutory law which OEO could not waive retroactively; and (4) CSEOO could not apply state contributions required under other federal grants to the nonfederal contribution requirement.