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NCJ Number: 69467 Find in a Library
Title: FAILURE TO PROVIDE EFFECTIVE AUDITS OF FEDERAL GRANTS - SIXTH REPORT BY THE HOUSE COMMITTEE ON GOVERNMENT OPERATIONS
Author(s): ANON
Corporate Author: US Congress
House Cmtte on Government Operations
United States of America
Date Published: 1979
Page Count: 24
Sponsoring Agency: National Institute of Justice/
Rockville, MD 20849
US Congress
Washington, DC 20515
Sale Source: National Institute of Justice/
NCJRS paper reproduction
Box 6000, Dept F
Rockville, MD 20849
United States of America
Document: PDF
Type: Legislative/Regulatory Material
Language: English
Country: United States of America
Annotation: BASED ON CONGRESSIONAL HEARINGS AND A REVIEW CONDUCTED BY THE GENERAL ACCOUNTING OFFICE, THIS REPORT DESCRIBES PROBLEMS IN AUDITING FEDERAL GRANTS AND PRESENTS RECOMMENDATIONS TO IMPROVE THE SYSTEM.
Abstract: THE PRESENT SYSTEM OF AUDITING FEDERAL GRANTS DOES NOT GUARD AGAINST MISUSE OF FUNDS, AS DEMONSTRATED IN A GENERAL ACCOUNTING OFFICE (GAO) REVIEW OF 73 GRANT RECIPIENTS WHICH FOUND THAT 80 PERCENT OF THEIR FEDERAL FUNDS WERE NOT AUDITED BY GRANTOR AGENCIES AND THAT THE NARROW FOCUS OF AUDITS PREVENTED AUDITORS FROM DETERMINING WHOSE FUNDS OR ASSETS THEY WERE REVIEWING. MANY RECIPIENTS WERE AUDITED REPEATEDLY WITH NO ADDITIONAL BENEFIT TO THE GOVERNMENT. THE CONGRESSIONAL SUBCOMMITTEE ATTRIBUTED GRANT AUDITING PROBLEMS TO THE PRACTICE OF EACH AGENCY AUDITING ITS OWN GRANTS RATHER THAN COORDINATING WITH OTHER AGENCIES WHO PROVIDED FUNDS TO THE SAME RECIPIENT. INCONSISTENT LAWS AND REGULATIONS CONTRIBUTED TO DIFFICULTIES ALONG WITH INADEQUATE AUDIT RESOURCES. WITNESSES DURING THE HEARINGS SUPPORTED THE CONCEPT OF SINGLE, COORDINATED AUDITS OF GRANT RECIPIENTS ON A GOVERNMENTWIDE BASIS FOR ALL GRANTEES. FURTHERMORE, THEY AGREED THAT THE OFFICE OF MANAGEMENT AND BUDGET (OMB) SHOULD IMPLEMENT THIS APPROACH BY DESIGNATING FEDERAL AGENCIES THAT WILL HAVE RESPONSIBILITY FOR THE SINGLE AUDIT OF SELECTED GRANT RECIPIENTS. OMB IS ALSO WORKING WITH FEDERAL AGENCIES AND GAO TO DEVELOP A STANDARD AUDIT GUIDE WITH PARTICULAR ATTENTION TO COMPLIANCE FACTORS. A CENTRALIZED SYSTEM TO IDENTIFY MULTIFUNDED RECIPIENTS IS ALSO NEEDED. OMB AND OTHER AGENCIES SHOULD MAKE MAXIMUM USE OF AUDITS CONDUCTED BY STATE, LOCAL, AND INDEPENDENT AUDITORS. OMB DID NOT CONCUR WITH GAO'S RECOMMENDATION THAT PAYMENTS FOR AUDITS NOT MEETING FEDERAL AUDITING GUIDELINES BE WITHHELD, BUT DID AGREE THAT SOME TYPE OF SANCTION WAS NEEDED. SINCE WITNESSES CONTENDED THAT FEDERAL RESOURCES ARE INADEQUATE, IT MUST BE DETERMINED IF FEDERAL AUDITING ORGANIZATIONS ARE CAPABLE OF IMPLEMENTING THE SINGLE AUDIT CONCEPT. THE COMMITTEE EMPHASIZED THAT IMPROVEMENTS IN AUDITING FEDERAL GRANTS CANNOT BE ACHIEVED UNLESS OMB PROVIDES STRONG LEADERSHIP AND DIRECTION. (AUTHOR ABSTRACT MODIFIED)
Index Term(s): Audits; Federal aid; Federal programs; Grants or contracts; US Government Accountability Office (GAO)
To cite this abstract, use the following link:
http://www.ncjrs.gov/App/publications/abstract.aspx?ID=69467

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