Adverse Opinion on the Financial Statements of the Student Loan Insurance Fund for FY 1980
AFMD-82-52
Published: Jul 08, 1982. Publicly Released: Jul 08, 1982.
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Highlights
As required by the enabling legislation of the Guaranteed Student Loan Program, GAO reported to Congress its opinion on the Student Loan Insurance Fund's financial statements for the fiscal year (FY) ended September 30, 1980.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Education | The Secretary of Education should delegate all accounting, recordkeeping, and financial statement preparation responsibilities to the Office of Student Financial Assistance. |
Education agreed with the problem statement, but not with this recommendation. It does not intend to implement this recommendation, but it is pursuing other means of correction. It plans to implement procedures to improve document control, more clearly define organizational responsibilities, and upgrade accounting controls in general, with emphasis on payment and collection transactions.
|
| Department of Education | The Secretary of Education should direct the Office of Student Financial Assistance to: (1) prepare appropriate written accounting procedures; (2) record all cash transactions promptly; (3) analyze the fund's collection experience and establish an allowance for loss rates, which are based on this experience; (4) properly train and supervise accounting personnel; and (5) consistently verify manual computations when necessary to ensure the integrity of files and processing. |
Education plans no further action on this recommendation. It believes that the problems GAO identified stem from poor automatic data processing (ADP) systems; however, several years have past and a new ADP system has not been decided on.
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Topics
Accounting proceduresCollection proceduresCredit insuranceFinancial managementFinancial recordsHigher educationInternal controlsReports managementStudent loansInsurance claims