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Intergovernmental Relations: a Fiscal Perspective

The domestic functions of the federal-state-local partnership account for the most rapid increases in total government expenditures. Federal assistance now amounts to nearly one-fourth of state and local revenues. The General Accounting Office is engaged in evaluating the success of the many federal programs designed to assist state and local governments and in pursuing the task of stimulating improved auditing at all levels in an effort to provide a higher level of accountability. General revenue sharing demonstrates the clear need for federal-state-local cooperation if adequate audit coverage and accountability are to be achieved. The General Accounting Office is concerned that present methods of re porting revenue sharing expenditures do not provide the in formation needed to enable the citizenry to make informed judgments.