Block Grants: Issues in Designing Accountability Provisions

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Report Type	Reports and Testimonies
Report Date	Sept. 1, 1995
Report No.	AIMD-95-226
Subject	Accountability Entitlement programs Federal/state relations Financial management Grants-in-aid Intergovernmental fiscal relations Internal controls Medicaid AFDC Aid to Families with Dependent Children Program Alcohol, Drug Abuse, and Mental Health Block Grant Community Services Block Grant Education Block Grant General Revenue Sharing Program Block grants Federal funds

Summary:

Congress has shown strong interest in consolidating narrowly defined categorical grant programs into broader purpose block grants. A total of 15 block grant programs with funding of $35 billion were in effect in fiscal year 1994, constituting a small portion of the total federal aid to states. If Medicare and Aid to Families With Dependent Children are added, however, block grant spending could rise substantially--to as much as $138 billion or about 58 percent of total federal aid to states. This report summarizes information on how accountability for financial management program performance can be designed to fit a block grant approach, and the potential consequences flowing from such provisions. To provide an overview and summary of GAO's evaluations of past block grant programs, GAO reviewed nearly two decades of reports, testimony, and other GAO correspondence on accountability issues related to intergovernmental programs. GAO also consulted with experts on block grants, performance budgeting, and financial accountability.

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Block Grants: Issues in Designing Accountability Provisions