Decisive Government Action Needed To Resolve Problems of Community Action Programs in Los Angeles

HRD-79-91: Published: Jun 11, 1979. Publicly Released: Jun 11, 1979.

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The Greater Los Angeles Community Action Agency, second largest in the country, was terminated in December 1978. During the 5 years of its existence audits and investigative and management reports disclosed continuing problems.

The Agency's board of directors did not exercise effective control. Management reports and Community Service Administration (CSA) investigations found ineffective decisionmaking by the board, conflicts of interest within the board, and management influence over board members. As of 5 months following termination of the agency, the organization and responsibilities of future community action program sponsors in Los Angeles were uncertain. The closedown contract remains essentially open ended and responsibility for agency liabilities has not been determined. Of almost 900 community action agencies in the country, 81 have converted from an independent nonprofit agency representing the poor to a public program administered by municiple entities.

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