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Performance and Accountability Series:



January 2003:



Major Management Challenges and Program Risks:



Department of Education:



GAO-03-99:



A Glance at the Agency Covered in This Report



The Department of Education’s mission is to ensure equal access to 

education and to promote educational excellence throughout the nation. 

To accomplish this mission, the department funds programs in the 

following areas:



* preschool education;



* elementary and secondary education;



* special education and rehabilitative services;



* vocational and adult education;



* student financial assistance;



* higher education; and



* education research, statistics, and assessment.



The Department of Education’s Budgetary and Staff Resources:



[See PDF fpr image]



[End of figure]



This Series:



This report is part of a special GAO series, first issued in 1999 and 

updated in 2001, entitled the Performance and Accountability Series: 

Major Management Challenges and Program Risks. The 2003 Performance and 

Accountability Series contains separate reports covering each cabinet 

department, most major independent agencies, and the U.S. Postal 

Service. The series also includes a governmentwide perspective on 

transforming the way the government does business in order to meet 21st 

century challenges and address long-term fiscal needs. The companion 

2003 High-Risk Series: An Update identifies areas at high risk due to 

either their greater vulnerabilities to waste, fraud, abuse, and 

mismanagement or major challenges associated with their economy, 

efficiency, or effectiveness. A list of all of the reports in this 

series is included at the end of this report.



GAO Highlights:



Highlights of GAO-03-99, a report to Congress included as part of 

GAO’s Performance and Accountability Series:



Why GAO Did This Report:



In its 2001 performance and accountability report on the Department 

of Education, GAO identified challenges with student financial aid 

programs, financial management, and other areas facing Education.  

The information GAO presents in this report is intended to help 

sustain congressional attention and a departmental focus on 

continuing to make progress in addressing and overcoming these 

challenges and new challenges that have arisen due to legislative 

changes since 2001.  This report is part of a special series of 

reports on governmentwide and agency-specific issues.



What GAO Found:



Education has taken steps to address its continuing challenges of 

reducing vulnerabilities in its student aid programs and improving 

its financial management, such as establishing a senior management 

team to address key issues.  Meaningful actions are underway, but 

Education does not yet have the relevant, reliable, and timely 

information needed to effectively manage these programs, and as a 

result the student aid programs continue to be at high risk.



* Reduce vulnerability of student aid programs to fraud, waste, 

abuse, and mismanagement. Education has made considerable changes 

to address the ongoing challenges in administering its student aid 

programs.  However, Education needs to continue to address systems 

integration issues, reduce fraud and error in student aid 

application and disbursement processes, collect on student loan 

defaults, and improve its human capital management.



* Improve financial management.  Education has implemented many 

actions to address its financial management weaknesses, but it is 

too early to determine if these actions will be effective.  It 

will need to continue implementing corrective actions in order to 

resolve its financial management and internal control weaknesses.



Education will face new management challenges as it helps states 

and school districts meet the goals and requirements of the No 

Child Left Behind Act (NCLBA).  Implementation of the law has just 

begun, therefore it is too early to assess Education’s progress.



* Improve student achievement and teacher quality.  Under NCLBA 

there is an increased emphasis on improving student achievement 

and the quality of teachers.  Education will need to monitor 

states’ and school districts’ efforts to have students meet 

challenging academic standards and ensure that all teachers meet 

standards outlined in NCLBA. 



* Transform education into an evidence-based field. Education 

promotes and sponsors many types of research but has conducted and 

funded limited research on the effectiveness of some of its 

programs.  Education will need to develop and enforce rigorous 

standards for research projects it conducts and funds. 



* Link federal funding to accountability for results. Education 

will need to help states meet the increased assessment and 

accountability requirements of NCLBA.  This will be a challenge 

because a majority of states had difficulty complying with 

previous requirements and there are questions about the 

completeness and accuracy of some of the assessment data.



What Remains to be Done:



GAO believes the Department should:



* continue efforts to reduce vulnerability in student financial 

aid programs,



* continue implementation of actions to address financial 

management and internal control weaknesses, 



* assist and monitor states and school districts’ efforts to meet 

requirements of NCLBA, and



* ensure that research it conducts and funds is rigorous and 

relevant.



Contents:



Transmittal Letter:



Major Performance and Accountability Challenges:



GAO Contacts:



Related GAO Products:



Performance and Accountability and High-Risk Series:



January 2003:



The President of the Senate

The Speaker of the House of Representatives:



This report addresses the major management challenges and program risks 

facing the Department of Education as it seeks to ensure equal access 

to education and to promote educational excellence throughout the 

nation. The report discusses the actions that Education has taken and 

that are under way to address the challenges GAO identified in its 

Performance and Accountability Series 2 years ago, and major 

legislative events that have occurred that significantly influence the 

environment in which the department carries out its mission. Also, GAO 

summarizes the challenges that remain, new ones that have emerged, and 

further actions that GAO believes are needed.



This analysis should help the new Congress and the administration carry 

out their responsibilities and improve government for the benefit of 

the American people. For additional information about this report, 

please contact Cynthia M. Fagnoni, Managing Director, Education, 

Workforce and Income Security, at (202) 512-7215 or at 

fagnonic@gao.gov.



Signed by David M. Walker:



David M. Walker

Comptroller General 

of the United States:



[End of section]



Major Performance and Accountability Challenges:



In our last update in 2001,[Footnote 1] we identified several 

management challenges the Department of Education faced in 

administering its programs at the elementary, secondary, and 

postsecondary levels. These included 

(1) ensuring access to postsecondary education while reducing 

vulnerability of student aid programs to fraud, waste, abuse, and 

mismanagement; (2) encouraging states to improve performance 

information and upgrade federal evaluations used to assess how well all 

children reach challenging academic standards; (3) promoting 

coordination with other federal agencies and school districts to help 

build a solid foundation of learning for all children; and (4) 

improving financial management to help build a high performing agency. 

We also continued to designate Education’s student financial aid 

programs at high risk for fraud, waste, abuse, or mismanagement.



Since 2001, legislative changes and world events have significantly 

altered the environment in which Education operates, particularly at 

the elementary and secondary level. In 2002, Congress enacted the No 

Child Left Behind Act (NCLBA)[Footnote 2] to address concerns about 

student performance and the quality of elementary and secondary 

schools. This act includes significant changes in federal education 

policy and places additional requirements on states, beyond those in 

the Elementary and Secondary Education Act (ESEA) reauthorized in 1994. 

It includes reforms designed to increase accountability, provide 

choices to students in low-performing schools, ensure that all teachers 

are highly qualified, and promote the use of scientifically based 

research. For many of the NCLBA requirements, Education will need to 

help states and local school districts implement them. In addition to 

the NCLBA, the terrorist attacks of September 11TH affected the 

educational environment. The attacks underscored the concerns about 

students’ safety while at school and raised concerns about efforts to 

monitor foreign students attending schools in the United States. 

Furthermore, the attacks required educators to develop approaches and 

methods to help students understand the events.



In 2003, Education will continue to face management challenges in 

administering its student financial aid programs and its financial 

management. Education has made progress and demonstrated its commitment 

to addressing weaknesses in the student financial aid programs, but it 

does not yet have relevant, reliable, and timely financial and 

management information needed to effectively administer its grant and 

loan programs and the internal controls needed to maintain the 

integrity of their operations. Therefore, these programs continue to be 

at high risk for fraud, waste, abuse, and mismanagement. Education has 

also taken steps to address its financial management weaknesses, but 

further improvement is needed in order to ensure accountability to 

taxpayers.



Also, in 2003, Education will need to help states and school districts 

meet the goals and requirements of NCLBA. Although implementation of 

NCLBA is just beginning and it is too early to assess Education’s 

progress, we have identified several new challenges based on 

Education’s goals that it will face. These challenges are (1) improving 

student achievement in reading, math, and science and improving teacher 

quality; (2) transforming education into an evidence-based field by 

helping to raise the quality and relevance of research; and (3) 

creating a culture of achievement by linking federal funding to 

accountability for results. Two of the challenges, improving student 

achievement and teacher quality and helping raise the quality and 

relevance of education research, were previously reported in 2001 as 

one single issue--improve performance information and upgrade federal 

evaluations. Because NCLBA places greater importance on these issues 

and Education has identified them separately as strategic goals, we too 

have separately identified them as challenges. The third challenge--

linking federal funding to accountability for results--is new and 

reflects the emphasis that NCLBA has placed on accountability at the 

federal, state, and local levels. Further, one challenge identified in 

2001--promoting coordination with other federal agencies and school and 

local agencies--has been dropped because Education has made 

improvements in this area.



In summary, the specific major management challenges that Education 

continues to face and new challenges it is just beginning to face are 

as follows:



[See PDF for image] - graphic text:



[End of figure] - graphic text:



Ensure Access to Postsecondary Education While Reducing Vulnerability 

of Student Aid Programs to Fraud, Waste, Abuse, and Mismanagement:



At the postsecondary level, Education has continued to help students 

finance their education, but faces continued challenges in preventing 

fraud, waste, abuse, and mismanagement. Through federal grant and loan 

programs, millions of students, some of whom might not otherwise have 

access to higher education, have been able to enroll in postsecondary 

educational programs of their choice. These grant and loan programs 

provide over $50 billion annually in student aid. Education is 

responsible for ensuring that these programs are efficiently managed, 

establishing procedures to ensure that loans are repaid, and having 

adequate procedures to prevent fraud and abuse. Since 1990 we have 

identified these programs to be at high risk for fraud, waste, abuse, 

and mismanagement. To address these vulnerabilities, Education faces 

continuing challenges in addressing financial aid systems integration 

issues, reducing fraud and error in the student aid application and 

disbursement processes, collecting on defaulted student loans, and 

improving its human capital management.



Both Congress and Education have made changes to address the ongoing 

management challenges in administering the student financial aid 

programs. To address vulnerabilities in federal student aid programs 

and other long-standing management weaknesses, Congress established 

Education’s Office of Federal Student Aid (FSA)[Footnote 3] as a 

performance-based organization (PBO) in 1998. The specific purposes of 

the PBO are to increase accountability of officials; provide greater 

flexibility in management; integrate information systems; reduce costs; 

and develop and maintain a system containing complete, accurate, and 

timely data to ensure program integrity. FSA is also required to 

develop an annual 5-year performance plan and to prepare an annual 

performance report. FSA completed a performance plan for fiscal years 

2000-04. However, the performance report for fiscal years 2000 and 2001 

were not issued until December 2002. We have recommended that FSA and 

Education work collaboratively to take the steps necessary to ensure 

that complete and timely annual performance reports are submitted to 

Congress.



Since our last update in 2001, Education has made progress in and 

demonstrated its commitment to addressing the issues that have made 

student financial aid programs vulnerable to fraud, waste, abuse, and 

mismanagement. Education established a Management Improvement Team 

(MIT) comprised of senior-level managers within Education to formulate 

strategies to address key financial and management problems throughout 

the agency. The MIT has developed a system to identify, track, and 

resolve audit and management issues both agencywide and within the 

student financial aid programs. According to the MIT Accomplishments 

Report, it has undertaken several initiatives to improve the weaknesses 

in these programs. One initiative has resulted in collecting $269 

million in fiscal year 2002 by locating defaulted borrowers and 

matching them with the Department of Health and Human Services’ 

National Directory of New Hires database. Despite this commitment, 

Education does not yet have relevant, reliable, and timely financial 

and management information essential to effectively manage these 

programs and the internal controls to maintain the integrity of their 

operations.



While Education has taken steps to address some of its long-standing 

systems integration issues, critical work remains. Over the years 

Education has spent millions to integrate and modernize its many 

financial aid systems in an effort to provide more information and 

better service to its customers--students, parents, institutions, and 

lenders. Effectively and efficiently investing in information 

technology requires, among other things, an institutional blueprint 

that defines in both business and technology terms the organization’s 

current and target operating environments and provides a transition 

roadmap. This institutional blueprint, commonly called an enterprise 

architecture, is a recognized hallmark of successful public and private 

sector organizations. Because Education did not have an enterprise 

architecture and it lacked the ability to track students across 

programs, we recommended in 1997 that Education develop and enforce a 

departmentwide architecture and establish standard reporting formats 

and data definitions.[Footnote 4] In September 2002, Education’s Office 

of Inspector General (OIG) reported that Education and FSA had made 

progress in taking specific actions to lay the groundwork for their 

enterprise architectures, but that critical elements still needed to be 

completed, including integrating separate enterprise architectures 

into a departmentwide one and fully implementing common identifiers for 

students and institutions to use in departmentwide system applications.



With respect to FSA’s modernization plans, we have reported that FSA 

has selected a viable, industry-accepted means for integrating and 

using its existing data on student loans and grants.[Footnote 5] FSA 

has made progress in implementing this approach for one of its major 

business functions--the Common Origination and Disbursement process, 

which includes the implementation of a common record that institutions 

can use to submit student financial aid for the Pell Grant and Direct 

Loan programs. However, the ultimate success of this process hinges on 

FSA completing critical work, including addressing serious 

postimplementation operational problems, and helping thousands of 

schools in the implementation of the common record. Further, there are 

important elements to managing any information technology investment 

that FSA has not yet completed, such as determining whether expected 

benefits are being achieved and tracking lessons learned related to 

schools implementation of the common record. We have recommended that 

FSA expeditiously develop metrics, baseline data, and a tracking 

process for certain expected benefits; and develop and implement a 

process for continuously capturing and disseminating lessons learned in 

a written product or knowledge base to schools that have not yet 

implemented the common record.[Footnote 6] FSA has begun to take 

actions on both of these issues although more work remains. While FSA 

has made progress integrating its systems, both we and Education’s OIG 

have found that neither its performance plan nor its subsequent annual 

reports readily provide information about its progress in integrating 

systems. We have recommended that FSA develop and include clear goals, 

strategies, and measures in its plans and reports to better demonstrate 

its progress in integrating its financial aid systems.[Footnote 7] In 

response to this recommendation, Education plans to revise FSA’s 

performance plan to establish measurable goals and milestones for 

systems integration efforts in order to provide direction to FSA and 

enhance its accountability.



Education also faces challenges in maintaining program integrity, 

specifically ensuring that information reported on student aid 

applications is correct and that adequate internal controls exist to 

prevent erroneous and improper payments of grants and loans. To improve 

the integrity of the financial aid programs, Education should (1) 

continue to coordinate with the Internal Revenue Service (IRS) to 

verify income information reported on student aid applications, (2) 

provide clear policy and guidance on the impact of using tax provisions 

on student aid awards, and (3) implement controls to limit improper 

disbursements of grants and loans. In 2001, we reported that Education 

and IRS were implementing two pilot projects to match income data 

reported on student aid applications with IRS tax returns.[Footnote 8] 

Education has performed two sample income matches with IRS and verifies 

income information by asking 30 percent of applicants to provide copies 

of their tax returns to their institutions’ student financial aid 

offices. To implement the income match on a broader scale, legislation 

is needed to authorize IRS to release individual income data to 

Education for the purpose of verifying income on student aid 

applications. Education has worked with the Department of the Treasury 

and the Office of Management and Budget (OMB) to request that Congress 

enact such legislation. Also, we recommended that Education develop a 

policy specifying whether certain tax provisions should be included in 

the student aid eligibility formulas and clearly explain in its student 

aid application instructions who should report ownership of assets in 

higher education tax-preferred savings plans.[Footnote 9] Education 

agreed with this recommendation and stated that it will use the next 

reauthorization of the Higher Education Act to review the ways in which 

students pay for college and the student aid eligibility formulas. 

Finally, we identified weaknesses in the internal control process used 

by Education to identify institutions that were disbursing grants and 

loans to ineligible students. Education has taken steps to strengthen 

the integrity of these payment processes, such as analyzing student 

data to identify high concentrations of students over 65 and eligible 

noncitizens at a single institution to determine if problems exist that 

warrant further review. These actions are encouraging and if properly 

implemented should help to improve internal controls over these 

vulnerable payments.



A continuing challenge for Education and FSA is to prevent and collect 

defaulted student loans. While the national student loan default rate 

has decreased significantly from 11.6 percent in fiscal year 1993 to 

5.9 percent in fiscal year 2000, the cumulative amount of defaulted 

student loans has increased by almost $10 billion over the same time 

period.[Footnote 10] (See fig. 1.):



Figure 1: Amount of Student Loan Dollars in Default Remain High:



[See PDF for image] - graphic text:



[End of figure] - graphic text:



Note: Balances include principal, interest, late fees, and 

administrative charges for defaulted loans under both the Federal 

Family Education Loan and Federal Direct Loan Programs.



To address its challenges with defaulted student loans, Education and 

FSA have implemented several default management strategies, established 

electronic debiting as a repayment option, and entered into 

agreements[Footnote 11] with some guaranty agencies to set up 

alternative processes to service and process claims for defaulted 

loans. FSA’s draft fiscal year 2002 performance plan specified the 

goals it had for default management; however, it included only limited 

information about the strategies to achieve those goals. Without giving 

additional details on its strategies for default recovery and 

prevention, it is not clear how FSA will determine whether it has 

achieved its default management goals. We are reviewing the status of 

FSA’s default management goals and will report the results in February 

2003. Education has also developed electronic debiting as an option for 

students to repay their loans. We have recommended that Education take 

added steps to increase borrowers’ awareness of this option and that 

Education modify the electronic debit applications, so that borrowers 

interested in prepaying their loans can designate larger withdrawal 

amounts than what they agreed to pay when they initially completed the 

application.[Footnote 12] In response to our recommendation, Education 

will consider taking steps to better inform borrowers of their 

prepayment options, such as updating the Exit Counseling Guide for 

Borrowers. Finally, while Education has set up voluntary flexible 

agreements with four of its guaranty agencies, it is in the process of 

assessing whether they have been successful in lowering default and 

delinquency rates.



Like other federal agencies, Education must address serious human 

capital management issues. About 34 percent of Education’s career staff 

is eligible to retire, and about 38 percent of the workforce within FSA 

was eligible to retire in September 2001. Given the critical importance 

of human capital management, we recommended in June 2001 that Education 

develop and include specific human capital goals and measures in its 

performance plans.[Footnote 13] In response to our recommendation, 

Education added a specific objective to its strategic plan. We also 

recommended that FSA develop and implement a comprehensive human 

capital strategy that incorporates succession planning and addresses 

staff development.[Footnote 14] FSA has several human capital 

initiatives, including ones that address recruitment and performance 

evaluation. Moreover, in 2002 Education issued a comprehensive, 5-year 

human capital plan that also incorporates FSA. The plan, entitled One-

ED, aims to transform the agency into a flexible, high-performing 

workplace focused on program outcomes and management reforms. Also, the 

One-ED report identifies four critical areas in which improvements 

should be made: (1) top leadership commitment, 

(2) performance management, (3) workforce skills enhancement, and 

(4) leadership and succession planning. The report outlines specific 

steps and time frames for accomplishing tasks to improve its human 

capital management in these critical areas. For example, to address the 

lack of succession planning, Education has identified a model for 

identifying, mentoring, and developing leaders and potential leaders on 

the basis of performance and skills and plans to implement this model 

by the end of the 2002-03 performance cycle. While these are important 

steps, Education will need to continuously focus its attention on human 

capital.



Improve Financial Management to Help Build a High-Performing Agency:



Weaknesses in Education’s financial management and information systems 

limit its ability to achieve one of its key goals--improving financial 

management to help build a high-performing agency. With the exception 

of 1997, Education has not received an unqualified--or “clean”--opinion 

on its financial statements since its first agencywide audit in 1995. 

Education’s fiscal years 2001 and 2000 financial statement audit 

opinions were “qualified” because Education could not provide the 

auditors with sufficient evidence to support revisions to amounts in 

previously issued financial statements and certain amounts in the 

fiscal years 2001 and 2000 financial statements. Education’s auditors 

also reported significant internal control weaknesses. These weaknesses 

hamper its ability to generate reliable, useful, and timely information 

on an ongoing basis to ensure accountability to taxpayers. Although 

Education has implemented many actions in response to its financial 

management weaknesses, it is too soon to determine if the changes made 

will prove effective.



Education faces continuing challenges as it works to obtain an 

unqualified audit opinion on its financial statements. Beginning with 

its first agencywide audit in 1995 and continuing through 2001, 

Education’s auditors have repeatedly identified significant financial 

management weaknesses. They also issued qualified opinions on its 

fiscal years 2001 and 2000 financial statements. For both years 

Education was unable to provide the auditors with sufficient evidence, 

and the auditors were not able to otherwise satisfy themselves as to 

the accuracy or completeness of certain amounts included in the 

financial statements. These insufficiently explained or supported items 

included (1) corrections of over $1 billion in fiscal years 2001 and 

2000 to amounts previously reported in the fiscal years 2000 and 1999 

financial statements and (2) over $1.5 billion of assets and 

liabilities reported in the fiscal years 2001 and 2000 financial 

statements. These problems, in part, result from inadequate internal 

controls over Education’s financial management systems and financial 

reporting process and other areas as described in the following 

paragraphs.



Weaknesses in Education’s financial management systems and financial 

reporting process present another challenge. For fiscal years 2001 and 

2000, Education’s auditors again reported issues relating to financial 

management systems and financial reporting as a material internal 

control weakness. This broad control weakness has been defined to 

include elements relating to (1) the absence of a fully integrated 

financial management system; (2) deficiencies in the general ledger 

system that require extensive analysis of accounts to resolve errors by 

manual adjustments; (3) the need for a rigorous review of interim 

financial statements for timely identification and correction of 

errors; (4) the inability to accumulate, analyze, and present reliable 

financial information in the form of financial statements; (5) the 

dependence on a variety of stopgap measures to prepare financial 

statements; (6) the insufficiency of control activities, such as top-

level reviews to address and to seek to compensate for systemic control 

weaknesses; and (7) the need for a review to identify and quantify 

improper payments.



Education has taken some steps to address these issues. For fiscal 

years 2001 and 2000, auditors reported improvements in the financial 

reporting process. For example, during 2001 Education’s MIT developed 

specific actions to address issues raised in previous financial 

statement audits. According to the MIT Accomplishments Report, 

Education began performing certain critical reconciliations on a 

monthly basis and began preparing interim financial statements, which 

helped identify areas needing further study. In addition, Education 

replaced its general ledger system. Although these are positive steps, 

it is too early to determine what impact these changes will have on the 

financial reporting process, including the timely preparation of 

auditable financial statements. Timely preparation of the statements 

will be an additional challenge as OMB implements accelerated financial 

reporting deadlines that require Education to produce audited financial 

statements within 4 months after the end of the fiscal year beginning 

with 2002, and within 1.5 months after the end of the fiscal year 

beginning in 2004. To meet these deadlines, Education will need more 

than workaround solutions and temporary fixes to address surface 

conditions that are the result of underlying core causes.



Education needs to take further action to reduce its vulnerability to 

improper payments and lost assets. We reported that for May 1998 

through September 2000, weak internal controls over (1) the grants and 

loan disbursement process failed to detect certain improper payments; 

(2) third party draft processes increased Education’s vulnerability to 

improper payments; and (3) government purchase cards resulted in some 

fraudulent, improper, and questionable purchases.[Footnote 15] We also 

reported that Education lacked adequate internal controls over 

computers acquired with purchase cards and third party drafts. Among 

other things, we found that computer purchases valued at almost 

$400,000 were not recorded in Education’s property records, and 

$200,000 of that computer equipment could not be located. Auditors also 

reported that internal controls need strengthening in numerous areas 

relating to Education’s investment of over $30 million in property and 

equipment. These areas include the need to (1) improve the timeliness 

of its physical inventory and the reconciliation of such inventories to 

the books and records; (2) improve the controls over government owned 

property in the hands of contractors; (3) reconcile amounts in detailed 

property records to support amounts reported in financial statements; 

and (4) improve standardized polices and procedures for the receipt, 

tracking, and safeguarding of property and equipment. Improvements in 

these areas are important to ensure proper safeguarding of government 

assets.



In response to our report of significant internal control weaknesses in 

Education’s payment processes, government purchase cards, and poor 

physical control over its computer assets, several changes were made to 

policies and procedures to improve internal controls and program 

integrity. These changes are positive steps, but in many cases, our 

follow-up work indicated that they had not been effectively 

implemented. In March 2002, we reported that vulnerabilities remain in 

all areas we reviewed, except for third party drafts, which have been 

discontinued.[Footnote 16] Until these issues are fully addressed, 

Education will continue to be susceptible to improper payments and lost 

assets.



Finally, Education will need to continue its actions in addressing 

weaknesses in its information systems. For fiscal years 2001 and 2000 

Education’s auditors reported that they did not substantially comply 

with the Federal Financial Management Improvement Act (FFMIA) of 1996. 

FFMIA requires agencies to institute financial management systems that 

substantially comply with federal financial management systems 

requirements, applicable accounting standards, and the federal 

government’s Standard General Ledger. Auditors reported that without a 

fully integrated financial management system, deficiencies in the 

general ledger system, deficiencies in the manual adjustment process, 

and the need to strengthen other financial management controls such as 

reconciliation processes, impairs Education’s ability to accumulate, 

analyze, and present reliable financial information. Education also 

needs to address identified control weaknesses in its service 

continuity program. These reported weaknesses included the need for (1) 

a departmentwide, risk-based information security plan; (2) 

strengthened controls over critical financial and sensitive grant 

information to prevent unauthorized access and disclosure; and (3) an 

overall information technology security program. In September 2001 we 

reported that Education had made progress in correcting certain 

information system control weaknesses.[Footnote 17] However, we 

identified weaknesses in information systems that place critical 

financial and sensitive grant information at risk of unauthorized 

access and disclosure, and key operations at risk of disruption. We 

recommended that Education (1) correct the information system control 

weaknesses related to access authority, system software, network 

security, user identification and password management, access 

monitoring, physical access, segregation of duties, application program 

changes, and service continuity; and (2) fully implement a 

comprehensive departmentwide computer security management program. In 

response to our recommendations, Education stated that it had developed 

a corrective action plan and is taking steps to further strengthen and 

develop a more comprehensive information security program.



Improve Student Achievement in Reading, Mathematics, and Science and 

Improve Quality of Teachers:



Educating children at the elementary and secondary level is a high 

priority in our society; however, there have been many concerns 

expressed about the academic performance of our students. Various 

studies have indicated that one of the key components to improving 

student performance is the presence of qualified teachers. However, 

many school districts have not been able to attract and retain 

qualified teachers. To address concerns about student achievement, the 

federal investment in elementary and secondary education has increased 

significantly from over $20 billion in fiscal year 2000 to nearly $30 

billion in fiscal year 2002. This increased investment is accompanied 

by an increased emphasis on accountability in NCLBA for schools to 

raise achievement levels for all students--including those from poor 

families, with limited English proficiency, and with disabilities. 

Education will be faced with the challenge of helping states improve 

student achievement in reading, mathematics, and science and improve 

teacher quality. Although implementation of NCLBA has just begun, 

Education will need to monitor states’ and school districts’ efforts to 

meet the goals established by NCLBA.



One goal of NCLBA is to improve the academic achievement among students 

from poor families. Title I is the largest federal program supporting 

elementary and secondary education and is an important source of 

funding for many high poverty schools and districts. NCLBA increased 

funding for Title I by $1.7 billion from $8.6 billion in fiscal year 

2001 to $10.3 billion in fiscal year 2002. Title I funds are a key 

element in helping states and school districts meet the NCLBA goal of 

improving academic achievement among students from poor families. We 

reported in January 2002 that using a less restrictive hold-harmless 

provision would reduce variation in funding among school districts 

with similar numbers and percentages of poor children and would 

allocate more funding to states with more rapidly growing numbers of 

poor children.[Footnote 18] NCLBA revised the hold-harmless provisions 

to reallocate some grants to be more reflective of the number of poor 

children in the school district. Education’s challenge will be to 

monitor states’ use of these funds and determine whether the funds are 

reaching students in high poverty districts and whether the funds are 

helping students from poor families improve.



Based on new requirements in NCLBA, Education will need to help states 

and school districts improve achievement among students with limited 

English proficiency and students with disabilities. In May 2001 we 

reported that Education’s four bilingual education programs were 

designed to achieve the same overall objective and that consolidating 

them into one single program would provide Education the flexibility to 

meet the varied needs of school districts serving students with limited 

English proficiency.[Footnote 19] NCLBA offers a new, single grant 

program to address the needs of students with limited English 

proficiency and requires that these students be tested for reading and 

language arts in English after they have attended school in the United 

States for 3 consecutive years. To meet the challenge of educating 

students with limited English proficiency, school districts have 

flexibility in the methods they use and states have flexibility in how 

they measure proficiency. Education’s challenge will be to provide 

enough information and assistance to ensure that states and school 

districts, including those that had not previously participated in 

federal bilingual education programs, are aware of the available 

program flexibilities and to help states and school districts select 

program options that best meet their needs.



To improve achievement of students with disabilities, Education will 

need to continue to monitor special education programs authorized by 

the Individuals with Disabilities Education Act. Federal dollars are 

used together with state, local, and private resources to help states 

provide a comprehensive system of early intervention services to 

enhance the development of infants and toddlers with disabilities or 

those who are at risk of developmental delays. Additionally, federal 

funds are also used to provide access to a high quality elementary and 

secondary education for students with disabilities. While there is 

limited information available on the long-term effectiveness of these 

programs, Education has a few studies underway to collect information 

on the outcomes of children enrolled in these programs. Education will 

need to continue these efforts in order to help states and school 

districts measure achievements and progress of students with 

disabilities.



Education will face many challenges in supporting the goal of improving 

student achievement in reading, mathematics, and science, including 

ensuring that educators are aware of and have access to current math 

and science curriculum materials. Education has invested a significant 

amount of money in mathematics and science education programs that 

support a wide range of activities, including the development of 

curriculum materials. Since other federal agencies also develop 

mathematics and science materials, the National Clearinghouse for 

Mathematics and Science Education was established within Education to 

serve as a central source of information about these materials. We 

reported that most agencies did not send copies of all their 

mathematics and science materials to the clearinghouse.[Footnote 20] As 

a result, educators seeking to make informed decisions about these 

materials do not have a comprehensive source available for federally 

sponsored materials. We recommended in 2000 that Education take steps 

to notify agencies that the law requires them to submit materials to 

the Clearinghouse and to establish guidelines to follow in submitting 

the materials. Furthermore, we recommended that Education inform 

agencies that do not generally evaluate their educational materials 

about the importance of these evaluations and about the mechanisms 

available for evaluating their materials. In June 2001, Education 

cosponsored a workshop in which agency officials discussed with 

officials from other federal agencies the requirement that they submit 

materials to the clearinghouse as well as the principles and practices 

for evaluating mathematics and science materials.



Education will face challenges helping states and school districts meet 

the NCLBA requirements that all teachers have (1) a college degree, (2) 

been certified to teach in their state, and (3) demonstrated adequate 

knowledge in the subject area in which they are teaching by the 2005-06 

school year. To meet this challenge, Education will need to help states 

ensure that their higher education institutions are adequately 

preparing students to become teachers and that the programs states use 

to recruit teachers from other professions are effective. Through 

teacher quality enhancement grants authorized by Title II of the Higher 

Education Act (HEA), Education provides funds to states or partnerships 

between higher education institutions and local school districts for 

activities to improve teaching in their locality or state. It is too 

early to determine the grants’ effect on the quality of teaching in the 

classroom; however, we have made some recommendations to Education on 

improving its oversight of these grants. Because of broadly defined 

accountability measures, information collected as part of the 

accountability provisions has not allowed Education to accurately 

report on the quality of teacher training programs and the 

qualifications of current teachers in each state. We recommended that 

Education address this concern by providing clear definitions of terms 

associated with the collection of required information and allow 

sufficient time for verification of information collected.[Footnote 21] 

Education has identified three specific actions it has taken, or plans 

to take, that will improve the quality of the data. These include (1) 

adding a goal to its strategic plan that focuses on refining the Title 

II accountability system, (2) aligning the Title II data collection 

system with teacher quality requirements under NCLBA to reduce the 

burden on states in reporting data on teachers and their 

qualifications, and (3) developing legislative proposals for Congress 

to consider during the reauthorization of HEA.



In addition to grants authorized by HEA, Education administers many 

other programs that support training for teachers. We reported in 1999 

that the number and diverse nature of these programs create challenges 

in determining whether the programs are meeting the goals of providing 

teachers with access to programs that will improve their teaching 

skills.[Footnote 22] NCLBA combines a couple of these teacher training 

programs into a single grant program. Under the single grant, states 

and school districts are given flexibility to select strategies that 

best meet their teacher training needs. To meet the need for quality 

teachers, states have adopted alternative programs for persons pursuing 

second careers as teachers, some as a result of the success of the 

federally funded Troops to Teachers program. The Troops to Teachers 

program recruits former military personnel and helps them become 

certified and employed as teachers. As we reported, this program has 

been successful in recruiting mathematics and science teachers and 

teachers to inner city schools and high schools.[Footnote 23]



Transform Education into an Evidence-Based Field and Help to Raise the 

Quality and Relevance of Research:



Federal education programs will also be held accountable for 

demonstrating results in terms of student outcomes, and Education will 

be responsible for ensuring that the quality of research that it funds 

or conducts meets the highest standards. Since Education promotes and 

sponsors many types of research and disseminates much of this 

information to interested states, school districts, and others, a 

primary challenge will be to develop and enforce rigorous standards for 

research projects. We reported in 2001 that Education has had trouble 

gathering consistent information on federally funded elementary and 

secondary programs because of the flexibility states and school 

districts have to implement these programs.[Footnote 24] Nonetheless, 

Education has funded some projects designed to measure the 

effectiveness of its programs. For example, Education has supported 

research to examine the impact of Even Start, a program designed to 

improve the educational outcomes for disadvantaged children and their 

families. The study used an experimental design in which groups of 

children were randomly assigned either to a group that received program 

services or to a group that did not receive program services. The study 

examined 18 local Even Start programs over a 6-year period and is 

expected to be completed in 2003. Furthermore, Education has added to 

its strategic plan a goal to raise the quality of research it funds or 

conducts and has included measures on the percent of new evaluation 

projects it funds that use randomized experimental designs. In October 

2002 Congress passed the Education Sciences Reform Act, which made 

significant changes to the structure of Education’s research activities 

and sets standards to ensure that evaluations measure the effectiveness 

of Education’s programs.



For some areas, such as dropout prevention and student financial aid 

programs, Education has sponsored limited research on their 

effectiveness. Education funds programs that provide grants to states 

and localities to serve at-risk youth. These programs provide a range 

of services, including dropout prevention services. Because dropout 

prevention is one of many services provided in these programs, it is 

difficult to assess their effect on preventing school dropouts. 

Furthermore, Education does not require evaluations of these programs 

to include assessments of their effects on dropout rates. We 

recommended in February 2002 that Education evaluate the quality of 

existing dropout prevention research, determine how best to encourage 

or sponsor rigorous evaluation of the most promising state and local 

dropout prevention programs and practices, and determine the most 

effective means of disseminating the results of these and other 

available studies to state and local entities interested in reducing 

dropout rates.[Footnote 25] Education has agreed that rigorous evidence 

is needed and said that it will consider commissioning a systematic 

review of the literature on this topic. Education has also sponsored 

limited research on the impact of federal financial aid programs on 

student’s decisions to attend and complete college, but instead has 

focused its studies on program delivery. We recommended in September 

2002 that Education sponsor research on the impact of federal financial 

aid programs on postsecondary education attendance and choice, 

completion, and costs.[Footnote 26] Education has agreed to identify 

opportunities to fund research on how the federal investment affects 

students’ postsecondary education attendance and completion and 

institutions’ tuition and financial aid behavior.



To help states and school districts meet the requirements of NCLBA, 

Education could take steps to improve research on educational 

alternatives for students. NCLBA provides choices for parents of 

students in low-performing schools and allows states some flexibility 

in the type of choices that they provide. Under NCLBA, parents of 

children in low-performing schools have the option of transferring 

their child to a better performing public school or a public charter 

school. Moreover, states can use federal funds to establish public 

charter schools or to provide supplemental educational services, such 

as private tutoring, to students in low-performing schools. States and 

school districts may also use private management companies to operate 

low-performing schools. Our review of public schools managed by private 

for-profit management companies found insufficient research on the 

effectiveness of these companies’ programs on student achievement, 

parental satisfaction, parental involvement, or school 

climate.[Footnote 27]



In addition to choices within public schools, some parents have the 

option of using publicly or privately funded vouchers to send their 

children to private schools. Our reviews of both publicly and privately 

funded vouchers have found that there is limited research on the 

effectiveness of these programs. For example, we reported that research 

on students’ academic achievement in publicly funded voucher programs 

in Cleveland and Milwaukee found little or no difference in voucher and 

public school students’ overall academic performance, but some studies 

found that voucher students performed better in some of the subject 

areas tested.[Footnote 28] None of the findings is definitive because 

researchers obtained different results when they used different methods 

to compensate for weaknesses in the data. Moreover, we reported that 

the results of studies on privately funded vouchers in New York City; 

Washington, D.C.; and Dayton, Ohio, suggest positive academic 

achievements for African American students in New York.[Footnote 29] 

The programs examined were relatively small in scale; therefore, the 

findings cannot be generalized beyond the specific programs and 

geographic areas where they were conducted.



Another step to raising the quality and relevance of education research 

is to develop methods to effectively assess the usefulness of research 

funded by various departments within Education. Education could improve 

the way it evaluates research funded through its Research & Development 

Centers, Regional Labs, and Comprehensive Centers.[Footnote 30] Peer 

review is well accepted and widely used throughout the government to 

assess the merit of research proposals and the scientific soundness of 

research. Education has used a peer review process to assess its 

Research & Development Centers and Regional Labs; however, the peer 

review process it used did not directly assess research usefulness, 

outcomes, or effects. Moreover, Education’s procedures for peer reviews 

had a potential for bias and were cumbersome, which limited the 

usefulness of their findings. To address these concerns, we have 

recommended that Education revise its peer review standards to allow 

for division of labor and greater concentration on assessing the 

quality of projects, services, and products rather than reviewing 

procedural materials. Evaluations about the Comprehensive Centers as a 

network provided useful information, but we recommended that future 

evaluations provide information on each center. Education agreed with 

these recommendations but did not provide specific information on how 

it will proceed. In 2002, Congress passed new legislation that includes 

a provision to conduct evaluations of each Comprehensive Center.



Create a Culture of Achievement by Linking Federal Funding to 

Accountability for Results:



The increased focus on assessment and accountability under NCLBA 

presents significant challenges to Education, particularly since a 

majority of states had difficulty meeting previous requirements. 

Education will need to help states implement NCLBA’s requirements and 

monitor their progress. Although implementation of NCLBA has just 

begun, states were required under the Elementary and Secondary 

Education Act, reauthorized in 1994, to meet certain accountability and 

assessment standards. We reported that as of March 2002 a majority of 

states had not complied with Title I requirements under the 1994 law; 

thus, many states may not be well positioned to meet the deadlines for 

implementing the requirements under NCLBA.[Footnote 31] Noncompliant 

states had most commonly not met two Title I requirements--assessing 

all students and breaking out assessment data by subcategories of 

students. While Title I did not permit states to exempt any student 

subgroup from their assessments and Education’s guidance stated that 

individual exemptions were permitted by the states only in 

extraordinary circumstances, many states allowed substantial 

exemptions for students with limited English proficiency and 

disabilities. Unlike the 1994 law, NCLBA requires schools to 

demonstrate progress in the academic achievement of all students and 

report progress by race and ethnicity and whether students are 

economically disadvantaged, have limited English proficiency, or have 

disabilities. Education’s challenge will be to ensure that states 

comply with the new standards and to hold them accountable for results.



Furthermore, Education will need to take steps to ensure that 

assessment data are complete and accurate in order to reduce the 

potential for undetected errors in test scoring that could affect 

decisions about schools and students and damage confidence in test 

results. In April 2002, we reported that almost all states had hired 

contractors to score Title I assessments; however, 16 of these states 

reported that they did not monitor the contractors’ work.[Footnote 32] 

Moreover, in several states, contractors made scoring errors that in 

some cases resulted in students and schools being erroneously 

identified as needing services and improvement. Because of this 

finding, we recommended that Education use state compliance reviews to 

monitor states’ oversight of their contractors. Education reported that 

it plans to review states’ efforts to monitor the quality of products 

delivered by their contractors and the procedures used by states to 

ensure accuracy of the assessment data. In a joint audit with 

Education’s OIG, two state audit agencies and one city audit agency, we 

assessed the quality of accountability data used by states. As part of 

this effort OIG reported on the quality of Title I performance data 

used to identify schools in need of improvement in several states. OIG 

reported that Education should strengthen its management controls to 

ensure that Title I school improvement data are reliable and 

valid.[Footnote 33]



[End of section]



GAO Contacts:



Subject(s) covered in this report: Ensure access to postsecondary 

education while reducing vulnerability of student aid programs; ; 

Improve teacher preparation programs (funded through HEA); ; Transform 

education into an evidence-based field (higher education); Contact 

person: Cornelia Ashby, Director; Education, Workforce, and Income 

Security; (202) 512-7215; ashbyc@gao.gov.



Subject(s) covered in this report: Improve student achievement and 

improve quality of teachers; ; Transform education into an evidence-

based field (K-12); ; Link federal funding to accountability for 

results; Contact person: Marnie Shaul, Director; Education, Workforce, 

and Income Security; (202) 512-7215; shaulm@gao.gov.



Subject(s) covered in this report: Improve financial management; 

Contact person: Linda Calbom, Director; Financial Management and 

Assurance; (202) 512-9508; calboml@gao.gov.



[End of table]



[End of section]



Related GAO Products:



Reduce Vulnerability of Student Aid Programs:



Federal Student Aid: Progress Made in Implementing the Common 

Origination and Disbursement Process, but Critical Work Remains. GAO-

03-241. Washington, D.C.: December 31, 2002:



Student Aid and Tax Benefits: Better Research & Guidance Will 

Facilitate Comparison of Effectiveness and Student Use. GAO-02-751. 

Washington, D.C.: September 13, 2002.



Federal Student Aid: Additional Management Improvements Would Clarify 

Strategic Direction and Enhance Accountability. GAO-02-255. 

Washington, D.C.: April 30, 2002.



Direct Student Loans: Additional Steps Would Increase Borrowers’ 

Awareness of Electronic Debiting and Reduce Federal Administrative 

Costs. GAO-02-350.  Washington, D.C.: March 29, 2002. :



Federal Student Loans: Flexible Agreements with Guaranty Agencies 

Warrant Careful Evaluation. GAO-02-254. Washington, D.C.: January 31, 

2002.



Student Financial Aid: Use of Middleware for Systems Integration Holds 

Promise. GAO-02-7. Washington, D.C.: November 30, 2001.



Department of Education: Status of Achieving Key Outcomes and 

Addressing Major Management Challenges. GAO-01-827. Washington, D.C.: 

June 29, 2001.



Department of Education: Key Aspects of the Federal Direct Loan 

Program’s Cost Estimates. GAO-01-197. Washington, D.C.: January 12, 

2001. :



Student Financial Aid Information: Systems Architecture Needed to 

Improve Programs’ Efficiency. AIMD-97-122. Washington, D.C.: July 29, 

1997.



Improve Financial Management:



Government Purchase Cards: Control Weaknesses Expose Agencies to Fraud 

and Abuse. GAO-02-676T. Washington, D.C.: May 1, 2002.



Education Financial Management: Weak Internal Controls Led to Instances 

of Fraud and Other Improper Payments. GAO-02-406. Washington, D.C.: 

March 28, 2002.



Education Financial Management: Weak Internal Controls Led to Instances 

of Fraud and Other Improper Payments. GAO-02-513T. Washington, D.C.: 

April 10, 2002.



Financial Management: Poor Internal Controls Expose Department of 

Education to Improper Payments. GAO-01-1151. Washington, D.C.:  

September 28, 2001.



Education Information Security: Improvements Made, but Control 

Weaknesses Remain. GAO-01-1067. Washington, D.C.: September 12, 2001.



Improve Student Achievement and Teacher Quality:



Higher Education: Activities Underway to Improve Teacher Training, but 

Reporting on These Activities Could Be Enhanced. GAO-03-6. Washington, 

D.C.: December 11, 2002.



Special Education: Grant Programs Designed to Serve Children Ages 0-5. 

GAO-02-394. Washington, D.C.: April 25, 2002.



Title I Funding: Poor Children Benefit Though Funding Per Poor Child 

Differs. GAO-02-242. Washington, D.C.: January 31, 2002.



Troops to Teachers: Program Helped Address Teacher Shortages. 

GAO-01-567. Washington, D.C.: May 25, 2001.



Bilingual Education: Four Overlapping Programs Could Be Consolidated. 

GAO-01-657. Washington, D.C.: May 14, 2001.



Public Education: Meeting the Needs of Students With Limited English 

Proficiency. GAO-01-226. Washington, D.C.: February 23, 2001.



Math and Science Education: Comprehensive Information About Federally 

Funded Materials Not Available. HEHS-00-110. Washington, D.C.: July 12, 

2000.



Teacher Training: Over $1.5 Billion Federal Funds Invested in Many 

Programs. HEHS-99-117. Washington, D.C.: May 5, 1999.



Transform Education into an Evidence-Based Field:



Public Schools: Insufficient Research to Determine Effectiveness of 

Selected Private Education Companies. GAO-03-11. Washington, D.C.: 

October 29, 2002.



School Vouchers: Characteristics of Privately Funded Programs. GAO-02-

752. Washington, D.C.: September 10, 2002.



Head Start and Even Start: Greater Collaboration Needed on Measures of 

Adult Education & Literacy. GAO-02-348. Washington, D.C.: March 29, 

2002.



School Dropouts: Education Could Play a Stronger Role in Identifying 

and Disseminating Promising Prevention Strategies. GAO-02-240. 

Washington, D.C.: February 1, 2002.



Education Research: Education Should Improve Assessment of R&D Centers, 

Regional Labs, and Comprehensive Centers. GAO-02-190. Washington, D.C.: 

January 24, 2002.



School Vouchers: Publicly Funded Programs in Cleveland & Milwaukee. 

GAO-01-914. Washington, D.C.: August 31, 2001.



Early Childhood Programs: The Use of Impact Evaluations to Assess 

Program Effects. GAO-01-542. Washington, D.C.: April 16, 2001.



Link Federal Funding to Accountability for Results:



Title I: Education Needs to Monitor States’ Scoring of Assessments. 

GAO-02-393. Washington, D.C.: April 1, 2002.



Title I Program: Stronger Accountability Needed for Performance of 

Disadvantaged Students. HEHS-00-89. Washington, D.C.: June 1, 2000.



[End of section]



Performance and Accountability and High-Risk Series:



Major Management Challenges and Program Risks: A Governmentwide 

Perspective. GAO-03-95.



Major Management Challenges and Program Risks: Department of 

Agriculture. GAO-03-96.



Major Management Challenges and Program Risks: Department of Commerce. 

GAO-03-97.



Major Management Challenges and Program Risks: Department of Defense. 

GAO-03-98.



Major Management Challenges and Program Risks: Department of Education. 

GAO-03-99.



Major Management Challenges and Program Risks: Department of Energy. 

GAO-03-100.



Major Management Challenges and Program Risks: Department of Health and 

Human Services. GAO-03-101.



Major Management Challenges and Program Risks: Department of Homeland 

Security. GAO-03-102.



Major Management Challenges and Program Risks: Department of Housing 

and Urban Development. GAO-03-103.



Major Management Challenges and Program Risks: Department of the 

Interior. GAO-03-104.



Major Management Challenges and Program Risks: Department of Justice. 

GAO-03-105.



Major Management Challenges and Program Risks: Department of Labor. 

GAO-03-106.



Major Management Challenges and Program Risks: Department of State. 

GAO-03-107.



Major Management Challenges and Program Risks: Department of 

Transportation. GAO-03-108.



Major Management Challenges and Program Risks: Department of the 

Treasury. GAO-03-109.



Major Management Challenges and Program Risks: Department of Veterans 

Affairs. GAO-03-110.



Major Management Challenges and Program Risks: U.S. Agency for 

International Development. GAO-03-111.



Major Management Challenges and Program Risks: Environmental Protection 

Agency. GAO-03-112.



Major Management Challenges and Program Risks: Federal Emergency 

Management Agency. GAO-03-113.



Major Management Challenges and Program Risks: National Aeronautics and 

Space Administration. GAO-03-114.



Major Management Challenges and Program Risks: Office of Personnel 

Management. GAO-03-115.



Major Management Challenges and Program Risks: Small Business 

Administration. GAO-03-116.



Major Management Challenges and Program Risks: Social Security 

Administration. GAO-03-117.



Major Management Challenges and Program Risks: U.S. Postal Service. 

GAO-03-118.



High-Risk Series: An Update. GAO-03-119.



High-Risk Series: Strategic Human Capital Management. GAO-03-120.



High-Risk Series: Protecting Information Systems Supporting the Federal 

Government and the Nation’s Critical Infrastructures.

GAO-03-121.



High-Risk Series: Federal Real Property. GAO-03-122.



FOOTNOTES



[1] U.S. General Accounting Office, Major Management Challenges and 

Program Risks: Department of Education, GAO-01-245 (Washington, D.C.: 

Jan. 2001).



[2] P. L. 107-110 (Jan. 8, 2002).



[3] Financial aid programs are administered by an office previously 

known as the Office of Student Financial Assistance (SFA). 



[4] U.S. General Accounting Office, Student Financial Aid Information: 

Systems Architecture Needed to Improve Programs’ Efficiency, AIMD-97-

122 (Washington, D.C.: July 29, 1997).



[5] U.S. General Accounting Office, Student Financial Aid: Use of 

Middleware for Systems Integration Holds Promise, GAO-02-7 (Washington, 

D.C.: Nov. 30, 2001).



[6] U.S. General Accounting Office, Federal Student Aid: Progress Made 

in Implementing the Common Origination and Disbursement Process, but 

Critical Work Remains, GAO-03-241 (Washington, D.C.: Dec. 31, 2002).



[7] U.S. General Accounting Office, Federal Student Aid: Additional 

Management Improvements Would Clarify Strategic Direction and Enhance 

Accountability, GAO-02-255 (Washington, D.C.: Apr. 30, 2002).



[8] GAO-01-245, 18.



[9] U.S. General Accounting Office, Student Aid and Tax Benefits: 

Better Research and Guidance Will Facilitate Comparison of 

Effectiveness and Student Use, GAO-02-751 (Washington, D.C.: Sept. 13, 

2002).



[10] Some default principal amounts have been recovered through 

subsequent collections.



[11] A voluntary flexible agreement provides guaranty agencies 

flexibility to implement new business practices by waiving or modifying 

some of the requirements established under federal statutes that apply 

to other guaranty agencies.



[12] U.S. General Accounting Office, Direct Student Loans: Additional 

Steps Would Increase Borrowers’ Awareness of Electronic Debiting and 

Reduce Federal Administrative Costs, GAO-02-350  (Washington, D.C.: 

Mar. 29, 2002). 



[13] U.S. General Accounting Office, Department of Education: Status of 

Achieving Key Outcomes and Addressing Major Management Challenges, GAO-

01-827 (Washington, DC: June 29, 2001).



[14] GAO-02-255, 26.



[15] U.S. General Accounting Office, Education Financial Management: 

Weak Internal Controls Led to Instances of Fraud and Other Improper 

Payments, GAO-02-406 (Washington, D.C.: Mar. 2002).



[16] GAO-02-406, 2.



[17] U.S. General Accounting Office, Education Information Security: 

Improvements Made, but Control Weaknesses Remain, GAO-01-1067 

(Washington, D.C.: Sept. 12, 2001).



[18] U.S. General Accounting Office, Title I Funding: Poor Children 

Benefit Though Funding Per Poor Child Differs, GAO-02-242 (Washington, 

D.C.: Jan. 31, 2002).



[19] U.S. General Accounting Office, Bilingual Education: Four 

Overlapping Programs Could Be Consolidated, GAO-01-657 (Washington, 

D.C.: May 14, 2001).



[20] U.S. General Accounting Office, Math and Science Education: 

Comprehensive Information About Federally Funded Materials Not 

Available, GAO-HEHS-00-110 (Washington, D.C.: July 12, 2000).



[21] U.S. General Accounting Office, Higher Education: Activities 

Underway to Improve Teacher Training, but Reporting on These Activities 

Could Be Enhanced, GAO-03-6 (Washington, D.C.: Dec. 11, 2002).



[22] U.S. General Accounting Office, Teacher Training: Over $1.5 

Billion Federal Funds Invested in Many Programs, HEHS-99-117 

(Washington, D.C.: May 5, 1999).



[23] U.S. General Accounting Office, Troops to Teachers: Program Helped 

Address Teacher Shortages, GAO-01-567 (Washington, D.C.: May 25, 2001).



[24] GAO-01-245, 20.



[25] U.S. General Accounting Office, School Dropouts: Education Could 

Play a Stronger Role in Identifying and Disseminating Promising 

Prevention Strategies, GAO-02-240 (Washington, D.C.: Feb. 1, 2002).



[26] GAO-02-751, 31.



[27] U.S. General Accounting Office, Public Schools: Insufficient 

Research to Determine Effectiveness of Selected Private Education 

Companies, GAO-03-11 (Washington, D.C.: Oct. 29, 2002).



[28] U.S. General Accounting Office, School Vouchers: Publicly Funded 

Programs in Cleveland and Milwaukee, GAO-01-914 (Washington, D.C.: Aug. 

31, 2001).



[29] U.S. General Accounting Office, School Vouchers: Characteristics 

of Privately Funded Programs, GAO-02-752 (Washington, D.C.: Sept. 10, 

2002).



[30] The Research & Development Centers, Regional Labs, and 

Comprehensive Centers share responsibility with other programs created 

by Congress for education research, research-based activities, and 

technical assistance.



[31] U.S. General Accounting Office, Title I: Education Needs to 

Monitor States’ Scoring of Assessments, GAO-02-393 (Washington, D.C.: 

Apr. 1, 2002).



[32] GAO-02-393, 3. 



[33] U.S. Department of Education, Office of Inspector General, 

Improving Title I Data Integrity for Schools Identified for Improvement 

(Philadelphia, Pa.: Mar. 2002).



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