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ERIC Number: ED466037
Record Type: Non-Journal
Publication Date: 2002-Apr-10
Pages: 16
Abstractor: N/A
Reference Count: N/A
ISBN: N/A
ISSN: N/A
Education Financial Management: Weak Internal Controls Led to Instances of Fraud and Other Improper Payments. Testimony before the Subcommittee on Select Education, Committee on Education and the Workforce, House of Representatives.
Calbom, Linda
This testimony summarizes a report generated by the U.S. General Accounting Office concerned with internal control problems found in the U.S. Department of Education. Significant internal control weaknesses in the U.S. Department of Education's payment processes and poor physical control over its computer assets made the department vulnerable to (and in some cases resulted in) fraud, improper payments, questionable purchases, and lost assets. These weaknesses have affected the U.S. Department of Education's ability to provide reliable financial information to decision-makers both inside and outside the agency and to maintain the financial integrity of its operations. Several instances of fraud were identified in the grant and loan areas, and pervasive control breakdowns and improper payments in other areas, particularly involving purchase cards. Ineffective controls were identified in the third-party draft process, so the U.S. Department of Education eliminated their use. Until the U.S. Department of Education takes further action to strengthen its internal controls over Pell Grants, purchase cards, and computer equipment, it will continue to be susceptible to fraud, waste, abuse, and mismanagement in these areas. (RT)
U.S. General Accounting Office, P.O. Box 37050, Washington, DC 20013. Tel: 202-512-6000; Fax: 202-512-6061; Web site: http://www.gao.gov.
Publication Type: Legal/Legislative/Regulatory Materials
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: General Accounting Office, Washington, DC.