Comments on S. 1961, a Bill Cited as the "Higher Education Amendments of 1980"

Proposed legislation would require GAO to make annual audits of financial accounts maintained by the proposed Student Loan Marketing Association. GAO feels that the currently required audits conducted every 3 years are sufficient since if problems are noted, an annual audit can be conducted. On the other hand, there is no need to conduct routine audits of accounts which have effective controls and are adequately covered by internal audits. GAO also feels that the definition of a developing institution which is used to establish eligibility for funds should be clarified, and guidance given concerning the decision of which eligible institutions are most in need and could benefit most from funding.