Summary: Testimony was given concerning 16 community action agencies' (CAA) use of Community Services Block Grant (CSBG) funds. GAO found that: (1) 11 out of the 16 agencies used 70 percent or more of their 1985 CSBG funds to deliver emergency, shelter, and nutrition services to the poor; (2) private nonprofit agencies used a greater proportion of their CSBG funds for administrative costs; and (3) two of the agencies chose not to charge categorical program funds for some of the allowed administrative costs in order to have more funding for direct services. GAO also found that: (1) about half of the 112 CSBG-supported services are targeted to fill specific needs that social services agencies do not address; (2) although CAA also provides supplemental services to social services clients through an emergency service program, CAA and local social services agencies try to prevent duplication of services through formal agreements and client referral systems; (3) even though CSBG funds usually represent a small portion of total CAA funding, these funds play an important role in program administration and service delivery; and (4) if CSBG funding were not available, CAA officials would only provide categorical services which had administrative funding available or they would reduce staff and outreach services, because they are reluctant to cut direct services or eligibility requirements.
