A r c h i v e d  I n f o r m a t i o n

   FOR RELEASE                           Contact:  Rodger D. Murphey    December 15, 1994                                  (202) 401-0774

U.S. DEPARTMENT OF EDUCATION INSPECTOR GENERAL ISSUES SEMIANNUAL REPORT TO CONGRESS

Developed by Inspector General James B. Thomas Jr., the plan was outlined in a semiannual report recently submitted to Congress. The report summarized previous audits, investigations, inspections and other reviews that identified areas for improvement and recommended corrective actions.

"The Office of Inspector General has worked with department managers and Congress in a continuing effort to ensure that our programs meet the needs of those they are intended to serve and also fulfill the purposes and requirements of their legislative mandate," Thomas said. "Our excellent working relationship with department managers gives me confidence that we can continue to serve the interests of students and taxpayers."

Education Secretary Richard W. Riley said he welcomes the independent analysis of the department's programs.

"We always have been responsive to the inspector general's recommendations," Riley said. "We have found them particularly helpful in preparing reauthorization proposals for the Elementary and Secondary Education Act and other programs."

Thomas said the first goal of the Office of Inspector General (OIG) is to improve program delivery and effectiveness by providing accurate and objective information, advice and recommendations. In the last six months, the OIG provided technical and advisory assistance to department managers responsible for administration of the new Federal Direct Student Loan program, which streamlines the student loan process and is expected to provide a $4.3 billion savings to taxpayers during the next five years.

The OIG also conducted a number of targeted efforts that resulted in recommendations for improving the effectiveness of other department programs.

For example, an OIG examination of the department's efforts to increase family involvement in elementary and secondary education -- as well as other exemplary parental involvement programs, activities and publications -- produced an "issues to consider" paper containing recommendations for the department's Family Involvement Initiative.

A second goal of the OIG is to ensure that department programs fulfill the purposes and requirements of their legislative mandates through efforts to detect, identify and prevent program weaknesses or abuses. These efforts have yielded substantial results during this reporting period, Thomas said.

For example, the OIG conducted a survey of 5,000 randomly selected proprietary school and community college students who received Pell Grants to assess their level of satisfaction with the quality of their vocational education. Of students responding to the survey, 56 percent of those who attended proprietary schools were critical of the quality of training they had received. Ninety percent of the community college students were satisfied with the quality of their education. The results of the survey provided department officials with information to consider as they examine the feasibility of developing a system to obtain feedback from students to improve student aid policy decisions. Another OIG review found that 45,000 Pell grant recipients obtained grants by falsely claiming U.S. citizenship. As a result, the IG recommended that citizenship verification procedures be strengthened.

A third goal for the OIG is to provide leadership in promoting improvement and integrity in federal education programs through partnerships with federal, state and local agencies and other organizations. For instance, an OIG review found deficiencies in more than 60 percent of 125 quality control reviews of non-federal audits selected randomly. The findings will be used to design training for public accountants who conduct the audits.

Also during the six-month reporting period, Thomas said OIG investigations resulted in 69 indictments and 63 convictions of persons or entities charged with fraud or other criminal violations relating to department programs and operations. The majority of these cases involved student aid programs. The report, covering the period from April 1 through September 30, 1994, is required by the Inspector General Act of 1978 (P.L. 95- 452), as amended.

Copies may be obtained by writing Semiannual Report, U.S. Department of Education, Office of Inspector General, 600 Independence Ave., SW, Washington D.C. 20202-1510.