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NCJRS Abstract

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NCJ Number: 73530 Find in a Library
Title: HEW (Department of Health, Education, and Welfare) Must Improve Control Over Billions in Cash Advances
Corporate Author: US Comptroller General
United States of America
Date Published: 1979
Page Count: 48
Sponsoring Agency: Azimuth Inc.
Fairmont, WV 26554
US Comptroller General
Washington, DC 20548
Sale Source: Azimuth Inc.
1000 Technology Drive, Suite 3120
Fairmont, WV 26554
United States of America
Document: PDF
Language: English
Country: United States of America
Annotation: This report identifies major problems in the Department of Health, Education, and Welfare's (HEW) management of cash advanced under grant, loan, and contract agreements with organizations outside the Federal government and recommends changes from the present system.
Abstract: Data were collected via a random sample of 280 recipient organizations in four States and a review of official documents and records. The sample received questionnaires requesting information on cash balances for specified periods and on matters related to DHEW's cash management practices. Data were verified through site visits to about 10 percent of the sample organizations. Results showed that the department's cash management system allows premature cash withdrawals because of poor organization and serious design deficiencies. Specific problems include inadequate accounting records and ineffective fund controls. Inadequate staffing may be the underlying cause of many of the problems noted. It is recommended that DHEW develop a control system to monitor recipients' cash balances and specify in agreements the conditions under which withdrawals can be made. In addition, letters of credit should be extended to all recipients who are eligible to use that financial method and an appropriate system should be established to handle loan and contract advances through the grants accounting system. The charging of advances to specific appropriations and the use of internal audits are also recommended. An appendix presents a November 7, 1978 memorandum from the DHEW Secretary to DHEW agencies concerning the development of a new grant and financial system. (Author abstract modified)
Index Term(s): Critiques; Financial management; Grant management information system; Grants or contracts; US Department of Health, Education, and Welfare
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