Financial Statements of the Student Loan Insurance Fund
HRD-78-165: Published: Sep 8, 1978. Publicly Released: Sep 8, 1978.
- Full Report:
Since 1968, GAO has issued seven reports to Congress on the financial aspects of the Student Loan Insurance Fund.
Many deficiencies in the Office of Education's accounting and computer systems were noted, including the following: (1) major accounts were unsupported by subsidiary records; (2) the allowance for loss rates for defaulted loans purchased, accrued interest, and claims-in-process was not based on actual program experience; and (3) the automated computer systems needed to provide accurate information for the Fund's financial statements were not functioning properly. A limited review of the Fund's financial transactions and operations for fiscal years 1976 and 1977 disclosed that these deficiencies remain uncorrected. No opinion was rendered since the poor condition of accounting records and lack of adequate internal control procedures would have necessitated additional time-consuming work.
Recommendation for Executive Action
Comments: Please call 202/512-6100 for additional information.
Recommendation: The Department of Health, Education, and Welfare should develop a plan of action that will detail the steps needed to improve the Fund accounting controls and procedures and the computer system that provides data for the Fund and the management of the Guaranteed Student Loan program.