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Federal Student Aid: Additional Management Improvements Would Clarify Strategic Direction and Enhance Accountability.

机译:联邦学生援助:额外的管理改进将明确战略方向并加强问责制。

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The Department of Education's Office of Federal Student Aid1 (FSA) administers more than $53 billion in federal financial aid for more than 8.1 million students. Since 1990, because of concerns about Education's vulnerabilities to losses due to fraud, waste, abuse, and mismanagement, GAO has included student financial aid on our high-risk list. To address these and other longstanding management weaknesses, Congress amended the Higher Education Act in 1998, establishing FSA as a performance-based organization (PBO) within the Department of Education. A PBO is intended to transform the delivery of public services by having the organization commit to achieving specific measurable goals with targets for improvement in exchange for being allowed to operate without the constraints of certain rules and regulations to achieve these targets. As a PBO, FSA specifies how it will achieve these targets through its performance plan, which includes its longer-term strategic goals and annual performance goals as well as strategies that it will use. In creating the PBO, Congress provided FSA, subject to the direction of the secretary of education, with more flexibility to manage its operations while requiring Education to retain policy-making functions. It has been more than three years since Congress created the PBO at FSA. In addition, FSA has implemented some practices to ensure the accountability of its senior leadership and to encourage accountability throughout the organization by linking staff bonuses to FSA's success in meeting its strategic goals. Despite the gains FSA has made in these areas, certain challenges remain. For example, FSA's human capital senior manager has not been an active participant in setting FSA's strategic direction-as have the heads of units managing its other key resources. In this report, we recommend that the secretary of education direct FSA, in collaboration with the secretary, to make its performance plan more useful to congressional decision makers in the areas of unit cost, systems integration and program integrity, that the secretary of education and FSA's chief operating officer (COO) work cooperatively to ensure that annual reports on the performance of the PBO are submitted to Congress in a timely and complete fashion, and that the secretary of education and FSA's COO coordinate closely to develop and implement a comprehensive human capital strategy.

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