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Pursuant to a congressional request, GAO reviewed allegations of fiscal mismanagement by the Division of Federal Occupational Health (DFOH) within the Health Resources and Services Administration (HRSA). GAO noted that during fiscal years 1992 and 1993: (1) DFOH did not violate the Economy Act by including regional office rent allocations in the costs to be reimbursed under interagency agreements, since there was a significant relationship between these costs and the services provided under the interagency agreements; (2) HRSA did not augment its appropriation by allocating regional office rental costs to DFOH; (3) HRSA and DFOH adopted a method for allocating DFOH share of office rent for cost recovery purposes based on the number of DFOH employees relative to other Department of Health and Human Services' employees who occupied the space; and (4) although DFOH complied with the Economy Act in including its rent in the costs to be reimbursed under interagency agreements, DFOH could not ensure compliance with the Economy Act on an individual interagency agreement basis.

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