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 <subject>Federal aid to localities</subject>
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 <title>Federal Assistance: Grant System Continues to Be Highly Fragmented</title>
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<abstract>The Federal Financial Assistance Management Improvement Act of
1999 is one of the most recent in a series of efforts to reform  
the federal grants management system. The act seeks to improve	 
the effectiveness and performance of Federal financial assistance
programs; simplify application and reporting requirements;	 
improve delivery of services to the public; and facilitate	 
greater coordination among those responsible for delivering such 
services. GAO has a responsibility to evaluate the implementation
of this Act by 2005 and will soon begin developing an approach	 
and methodology for the study. This testimony describes the	 
problems fostered by proliferation and fragmentation, which the  
Act addresses indirectly.</abstract>
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