Small Business Act:

Education's Disadvantaged Business Advocate Not Reporting to Proper Management Level

GGD-87-53: Published: Apr 10, 1987. Publicly Released: Apr 10, 1987.

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Pursuant to a congressional request, GAO reviewed the Department of Education's compliance with the Small Business Act, which requires that the Director of the agency's Office of Small and Disadvantaged Business Utilization (OSDBU) report to the Secretary or the Under Secretary.

GAO found that Education is not in compliance with the act's requirement, since the Director, OSDBU, reports to the Comptroller rather than to the Secretary or the Under Secretary.

Recommendation for Executive Action

  1. Status: Closed - Implemented

    Comments: As of June 7, 1987, the Director, OSDBU, has been reporting directly to and responsible only to the Under Secretary of Education. This brings Education into compliance with the Small Business Act, section 15(R)(3).

    Recommendation: To bring Education into compliance with section 15(k)(3) of the Small Business Act, the Secretary of Education should require the Director, OSDBU, to be responsible only to and report directly to the Secretary or Under Secretary.

    Agency Affected: Department of Education


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