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

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A letter report issued by the General Accounting Office with an abstract that begins "The Department of Education's Office of Federal Student Aid (FSA) administers more than $53 billion in financial aid for more than 8.1 million students. Since 1990, GAO has included student financial aid on its high-risk list. To address these and other long-standing management weaknesses, Congress established FSA as a performance-based organization (PBO) within Education in 1998. To develop and implement a strategic direction, FSA set three strategic goals, created indicators to measure progress toward these goals, and developed a tool to link employees' day-to-day activities to … continued below

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United States. General Accounting Office. April 30, 2002.

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A letter report issued by the General Accounting Office with an abstract that begins "The Department of Education's Office of Federal Student Aid (FSA) administers more than $53 billion in financial aid for more than 8.1 million students. Since 1990, GAO has included student financial aid on its high-risk list. To address these and other long-standing management weaknesses, Congress established FSA as a performance-based organization (PBO) within Education in 1998. To develop and implement a strategic direction, FSA set three strategic goals, created indicators to measure progress toward these goals, and developed a tool to link employees' day-to-day activities to these goals. The goals are to (1) increase customer satisfaction, (2) increase employee satisfaction, and (3) reduce unit cost. FSA's efforts have generally improved customer and employee satisfaction scores. FSA has begun to implement some human capital practices to better organize its services and manage its employees. But gaps exist, and FSA has not yet implemented performance management initiatives to develop and assess its employees. To better serve customers, FSA reorganized to reflect its different customers--students, schools, and financial partners. To encourage accountability, FSA is linking staff bonuses to FSA's strategic goals. Education continues to clarify FSA's level of independence and is now reviewing FSA's role and responsibilities as part of the departmentwide management planning effort."

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Government Accountability Office Reports

The U.S. Government Accountability Office (GAO) is an independent, nonpartisan agency that works for the U.S. Congress investigating how the federal government spends taxpayers' money. Its goal is to increase accountability and improve the performance of the federal government. The Government Accountability Office Reports Collection consists of over 13,000 documents on a variety of topics ranging from fiscal issues to international affairs.

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  • April 30, 2002

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  • June 11, 2014, 5:03 a.m.

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Thumbnail image of item number 1 in: 'Federal Student Aid: Additional Management Improvements Would Clarify Strategic Direction and Enhance Accountability'.
Thumbnail image of item number 2 in: 'Federal Student Aid: Additional Management Improvements Would Clarify Strategic Direction and Enhance Accountability'.
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Thumbnail image of item number 4 in: 'Federal Student Aid: Additional Management Improvements Would Clarify Strategic Direction and Enhance Accountability'.

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United States. General Accounting Office. Federal Student Aid: Additional Management Improvements Would Clarify Strategic Direction and Enhance Accountability, report, April 30, 2002; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc290819/: accessed March 23, 2025), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.

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