Waste, Fraud, and Abuse Under the State and Local Fiscal Assistance Act of 1972

Pursuant to a congressional request, GAO reviewed reported instances of alleged waste, fraud, or abuse in the General Revenue Sharing (GRS) program, focusing on: (1) the nature of the incidents; (2) the amount of funds the local governments received; and (3) the results of any investigation. GAO found that: (1) it had previously reported on three allegations of improper GRS expenditures, none of which were permissible under the applicable federal laws and regulations; (2) the three local governments involved in the allegations received $115,000, $183 million and $71,000, respectively; (3) it can not assess any allegations reported to the Department of the Treasury because Treasury does not maintain a readily accessible listing of alleged improprieties; and (4) Treasury officials familiar with the GRS program stated that Treasury rarely received any citizen complaints, and resolved any that it did receive by explaining that GRS funds could be spent for any purpose authorized under state and local laws.