A GENERAL ACCOUNTING OFFICE (GAO) REVIEW OF FEDERAL FINANCIAL ASSISTANCE PROGRAMS SHOWS THEIR VULNERABILITY TO FRAUD AND RELATED WHITE-COLLAR CRIMES, ALTHOUGH THE MAGNITUDE OF FRAUD IN SUCH PROGRAMS IS UNKNOWN. UNTIL RECENTLY, AGENCIES HAVE NOT MADE DETECTION OF FRAUD A HIGH PRIORITY. AS A FOLLOWUP TO THE GAO FINDINGS THAT AGENCIES ARE GENERALLY NOT EQUIPPED TO PREVENT AND DETECT FRAUD, THE COMPTROLLER GENERAL ESTABLISHED A SPECIAL TASK FORCE FOR THE PREVENTION OF FRAUD AND ABUSE WITH THE MAJOR RESPONSIBILITIES OF EVALUATING THE ADEQUACY OF THE MANAGEMENT CONTROL SYSTEMS IN FEDERAL AGENCIES REGARDING THEIR EFFECTIVENESS IN PREVENTING FRAUD. THE TASK FORCE IS ALSO TO ASSESS THE ADEQUACY OF FOLLOWUP AND CORRECTIVE ACTIONS TAKEN BY AGENCIES ON REPORTS OF AUDITORS AND INVESTIGATORS. ALL OF THE GAO'S WORK ON FRAUD AND ABUSE WILL BE BROUGHT UNDER THE TASK FORCE. TASK FORCE MEMBERS ARE CURRENTLY WORKING TO COORDINATE FRAUD AND ABUSE REVIEWS WITHIN ALL GAO DIVISIONS. THE TASK FORCE PLANS TO WORK CLOSELY WITH THE STAFF OF THE NEWLY ESTABLISHED INSPECTORS GENERAL AND THE DEPARTMENT OF JUSTICE IN CONDUCTING FRAUD INVESTIGATIONS. AN ATTACHMENT IS PROVIDED OF THE DIGEST OF THE GAO'S REVIEW OF FRAUD AND ABUSE CONTROLS IN FEDERAL ECONOMIC ASSISTANCE PROGRAMS. (RCB)