Question Concerning Whether Funds Available Under Career Education Incentive Act Were Illegally Rescinded

GAO was asked whether funds available under the Career Education Incentive Act were illegally rescinded by the Administration. Some of the funds were made available to the Department of Education for its program of career education incentives. The funds involved here have been available for obligation continuously since a previous GAO report in June 1980. No reserve has been established. GAO found no evidence to establish that the President, or any agency official, determined that the funds should not be spent for the program because they were not needed, or for fiscal policy or other reasons. Likewise, GAO was unable to conclude that a procurement process the agency engaged in was so unusual or unreasonably long that an intent to delay the obligation of funds until the fiscal year expired can be imputed to the agency. The fact that funds lapse or that proposed contracts are not awarded does not, by itself, constitute a rescission.