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ERIC Number: ED393374
Record Type: RIE
Publication Date: 1996-Feb-26
Pages: 76
Abstractor: N/A
Reference Count: N/A
Financial Audit. Federal Family Education Loan Program's Financial Statements for Fiscal Years 1994 and 1993. Report to the Congress.
Comptroller General of the U.S., Washington, DC.
The United States General Accounting Office (GAO) reviewed the Department of Education's Office of Inspector General's (OIG) audit of the annual financial statements for the Federal Family Education Loan Program (FFELP) for the fiscal year ended September 30, 1994. GAO reviewed OIG's audit rather than conduct its own to avoid duplication and to reduce expense. The study reviewed OIG's method and planning, evaluated its audit staff, participated in tests of cash receipts and disbursements, and reviewed OIG's working papers and other statements. OIG concluded that: (1) FFELP's liabilities for loan guarantees and related program costs were primarily calculated using models based on student loan data found to be unreliable; (2) that the Department of Education did not have systems or procedures in place to ensure that individual billing reports submitted by guaranty agencies and lenders were reasonable; and (3) that the financial reporting process did not ensure reliable reports. Corrective actions that were in progress included implementation of a new national database of loan-level data, new audit standards for lenders, and redesign of current financial management systems into a newly integrated core financial system. Continued weaknesses were found in computer general controls over FFELP's information system. An appendix contains a complete copy of the OIG report. (JB)
U.S. General Accounting Office, P.O. Box 6015, Gaithersburg, MD 20884-6015 (first copy free, additional copies $2 each).
Publication Type: Reports - Evaluative
Education Level: N/A
Audience: Policymakers
Language: English
Sponsor: N/A
Authoring Institution: Comptroller General of the U.S., Washington, DC.
Identifiers: Department of Education; Family Education Loan Program; Financial Reports; Guaranty Agencies