Use of Department of Education Title III Grant Funds by the International Institute of the Americas of World University

Pursuant to a congressional request, GAO analyzed the use of the Higher Education Act title III grant funds by the International Institute of the Americas of World University, San Juan, Puerto Rico.

GAO found that World University's financial management system was deficient and its financial stability was questionable. There was a fundamental lack of internal controls, inadequate subsidiary accounts payable ledgers, and insufficient source records. Further, accounting records were often not supported by source documentation nor were many of the records kept up to date. GAO also found that some university withdrawals of federal funds that were earmarked for the program may not have been used as intended. The university's financial situation has shown increasing deficit unrestricted fund balances over the past several years, and GAO believes that they will continue to show a deficit. GAO concluded that the university's financial records are unreliable and its assets are susceptible to loss from unauthorized use or disposition.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: William J. Gainer Team: General Accounting Office: Human Resources Division Phone: (202) 275-5365