Summary

The Community Services Administration (CSA) needs to increase control over grantee funds going to nongrantee organizations whose purpose is to support the Government's antipoverty effort.

Review of the financial records and documents of five national organizations that are not Federal grantees and the National Center for Community Action, a private nonprofit organization that is a grantee of CSA, showed that: some CSA grant funds were ultimately channelled into the lobbying organizations; the financial and administrative activities of the six organizations were closely controlled through interlocking directorates and executive positions; the financial controls necessary for the prudent expenditure of funds were not maintained for the nongrantee organizations; and no mechanisms were in use to evaluate the worth of nongrantee organization functions to the antipoverty effort.