Financial Difficulties and Funding at D-Q University

HRD-77-146: Published: Oct 17, 1977. Publicly Released: Oct 17, 1977.

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D-Q University, located near Davis, California, was established in 1971 to provide an educational program for Native American and Chicano people. The Department of Health, Education, and Welfare (HEW) denied D-Q University's funding proposals under the developing institutions of higher education title III program for 1974 through 1976. The University had many accountability problems involving federal funds and other matters. Those evaluating D-Q's programs had well-founded concerns and, therefore, funding denials were justified.

Although D-Q satisfied the minimum criteria for the title III program, both GAO and the Office of Education were concerned about D-Q's progress in satisfying certain other criteria established by the Office of Education for the title III program. For example, D-Q depended on federal funds for its support, and its reported enrollment varied greatly from year to year. Class attendance appeared to be poor, and few students transferred from the 2-year program at D-Q to 4-year colleges. Relatively few associate degrees have been awarded by the school. D-Q University has also had problems under other HEW and other federal agency programs. D-Q should be categorized as a high risk institution when being considered for federal funding. If, in the future, government support for D-Q University programs is resumed, D-Q will need considerable technical assistance to protect the federal investment in D-Q and for D-Q to continue operating.

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