For the second year in a row and only the third time in its 23-year history, the Education Department has received an unqualified or "clean" opinion on its fiscal year 2003 financial statements, U.S. Secretary of Education Rod Paige announced today.

The clean opinion, coveted because it reflects an auditor's unqualified acceptance of an organization's financial statements, culminated an audit by the national accounting firm of Ernst & Young. In addition, the opinion demonstrates that the department has eliminated several potential areas of concern that were referenced in last year's audit.

Paige also announced that the department has met the new, accelerated deadline for submitting the audit results to the Office of Management and Budget (OMB). The results are part of the department's Fiscal Year 2003 Performance and Accountability Report and demonstrate the department's commitment to producing increasingly timely, accurate financial data to assist with making informed management decisions. The report outlines the department's performance and progress towards meeting its mission, goals and objectives.

"These are major milestones in our efforts to foster a culture of accountability not just in our nation's schools through the No Child Left Behind Act, but also in our own house," Secretary Paige said. "We have made great strides in improving financial operations here at the Department of Education, and this audit proves that we can lead by example. It also demonstrates that we are at the beginning of a sustained, trustworthy stewardship of taxpayer dollars here at the department."

Chief Financial Officer Jack Martin noted that the clean audit opinion represents a vital achievement under the President's Management Agenda and credited a sophisticated, outcome-based strategy with specific objectives for helping attain the latest clean opinion. Among its goals:

• Continuing significant improvements to accounting reconciliation and reporting capabilities;

• Applying additional new internal control and financial management policies; and

• Instituting preparation of quarterly senior management financial reports, another historic first for the department.

"This success was produced by the vision of President Bush under the President's Management Agenda and the unparalleled teamwork put into place and subsequently supported by Secretary Paige," Martin said. "Every member of the Department of Education contributed this year to making sure the effort at sustaining the progress we've made continues."

For more details on management improvement, visit the department's priorities Web page at http://www.ed.gov/about/overview/mission/priorities.html.

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