NCJ Number
69529
Date Published
1979
Length
37 pages
Annotation
IN RESPONSE TO CONCERN OVER ACCOUNTABILITY AND BUDGETARY CONTROL, THE STUDY EXAMINED POLICIES AND PROCEDURES USED BY CALIFORNIA STATE AGENCIES TO ADMINISTER GRANT PROGRAMS AND CONTRACTS.
Abstract
BECAUSE OF THE VAGUENESS OF FEDERAL AND STATE STATUTORY DEFINITIONS, INCONSISTENT RESTRICTIVE COVENANTS, AND UNDEVELOPED CASE LAW, THE DISTINCTIONS BETWEEN GRANTS AND CONTRACTS ARE OFTEN UNCLEAR, AND PROCEDURES FOR ADMINISTERING SUCH FUNDS ARE LEFT TO THE DISCRETION OF STATE GRANTOR AGENCIES. TO OBTAIN INFORMATION ON THE NUMBER AND DOLLAR VALUE OF GRANTS AWARDED ANNUALLY BY STATE AGENCIES AND TO REVIEW PROCEDURES FOR ADMINISTERING THESE MONIES, THE CALIFORNIA DEPARTMENT OF FINANCE FIRST SURVEYED 30 DEPARTMENTS REGARDING GRANT ACTIVITIES DURING 1977-78. RESPONSES FROM 21 AGENCIES WHICH IDENTIFIED 5,583 GRANTS INDICATED THAT A STATEWIDE EVALUATION WAS BEYOND THE RESOURCES OF THE PROJECT. THEREFORE, THE STUDY FOCUSED ON ONE PROGRAM, THE MATERNAL AND CHILD HEALTH BRANCH (MCH) OF THE DEPARTMENT OF HEALTH SERVICE WHICH USES GRANTS TO DISPERSE FUNDS TO LOCAL GOVERNMENTAL AGENCIES, AND USES CONTRACTS FOR PROJECTS ASSOCIATED WITH NONPROFIT ORGANIZATIONS AND EDUCATIONAL INSTITUTIONS. PROJECTS RANGED FROM GENETIC COUNSELING TO SUPPLEMENTAL FOOD PROGRAMS AND USED $20.3 MILLION IN 1978-79 FROM FEDERAL AND STATE SOURCES. A SURVEY OF 12 CONTRACTS AND 10 GRANTS AWARDED BY MCH REVEALED MORE PROCEDURAL PROBLEMS IN GRANT AGREEMENTS THAN IN CONTRACTS. CLAUSES DESIGNED TO PROTECT THE STATE IN CASE OF LITIGATION WERE MISSING FROM MOST GRANT AGREEMENTS, AND NUMEROUS ERRORS IN BUDGET TOTALS AND COST JUSTIFICATIONS WERE FOUND. MONITORING PROJECT PERFORMANCE WAS INADEQUATE FOR BOTH CONTRACTS AND GRANTS. REQUIREMENTS FOR PROGRESS REPORTS WERE VAGUE, MCH SITE VISITS WERE INFREQUENT, AND FEW CONTRACTORS OR GRANTEES HAD SUBMITTED THEIR REPORTS. SUGGESTED IMPROVEMENTS FOR MCH INCLUDED THE DEVELOPMENT OF MANUALS CONTAINING SPECIFIC STANDARDS AND PROCEDURES, MAKING PAYMENT OF INVOICES DEPENDENT ON COMPLIANCE WITH PERFORMANCE SPECIFICATIONS, AND ORGANIZATIONAL CHANGES TO STRENGTHEN EVALUATION ACTIVITIES. THE DEFICIENCIES AND ISSUES IDENTIFIED IN THE STUDY OF FINANCIAL AGREEMENTS IS NEEDED. THE APPENDIXES CONTAIN SELECTED PROVISIONS OF THE 1977 FEDERAL GRANT AND COOPERATIVE AGREEMENT ACT, THE GRANT SURVEY FOR 21 CALIFORNIA STATE AGENCIES, AND CRITERIA USED IN ASSESSING MCH GRANTS AND CONTRACTS. (AUTHOR ABSTRACT MODIFIED)