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GAO examined the Department of Education's Federal Family Education Loan Program's financial statements and its internal controls and compliance with laws and regulations for the fiscal year ended September 30, 1993. GAO found that: (1) pervasive data inaccuracies prevented it from concluding whether the program's liabilities for loan guarantees were fairly stated as of September 30, 1993; (2) the program's statement of cash flows was reliable in all material respects; (3) it could not determine whether Education properly received or disbursed funds because of significant internal control weaknesses in its cost estimate, billing, and financial statement preparation procedures; (4) although the program's internal controls were not properly designed and implemented to effectively safeguard assets and ensure that there were no material misstatements, they were effective in ensuring compliance with selected budget authority laws and regulations; (5) ineffective controls and unreliable student loan data also affected the reliability of information contained in Education's annual budget submission; and (6) there was no evidence of noncompliance with selected laws and regulations.
Financial Audit: Federal Family Education Loan Program's Financial Statements for Fiscal Years 1994 and 1993