Use of Federal Funds by the Counseling Center, Bangor, Maine

HRD-78-33: Published: Dec 21, 1977. Publicly Released: Dec 21, 1977.

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A review of the use of federal funds by the Counseling Center, Bangor, Maine, covered allegations regarding dual and overcompensation of Center employees, unauthorized expenditures, payment practices regarding terminated employees, handling of contributions, improper matching of federal grants, and overstatement of charges to the Center's alcohol program.

The allegations were found to be either unsubstantiated, did not involve federal funds, or were isolated incidents. The Center did, however, overcharge the alcohol and the mental health grants by about $81,000 primarily because of weaknesses in its financial management and payroll systems. Although Department of Health, Education, and Welfare (HEW) program officials were aware of these weaknesses, they did not require an adequate financial management system or perform an audit. The lack of audit, inadequate financial monitoring by HEW, and weak financial manangement have contributed to the Center's problems.

Recommendation for Executive Action

  1. Status: Closed

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

    Recommendation: The Secretary of Health, Education, and Welfare should: (1) require that the overcharges discovered be recovered; (2) require that an audit be made of the grants not covered by this review; and (3) take actions to ensure that the Center's financial management practices and procedures are adequate to reduce the possibility of such overcharges in the future.

    Agency Affected:


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