Recommendations Described in Previous Semiannual Reports
                          on Which Corrective Action Has Not Been Completed

Section 5(a)(3) of the Inspector General Act requires a listing of each report resolved before the commencement of the reporting period for which management
has not completed corrective action.  The reports listed below are OIG internal and nationwide audit reports and management improvement reports.

                                                                                                            TOTAL          SEMIANNUAL
REPORT                                                                                       DATE           MONETARY        REPORT    
NUMBER  AUDITEE/TITLE                                                                      RESOLVED         FINDINGS        NO.     PAGE 

OFFICE OF ELEMENTARY AND SECONDARY EDUCATION

93-05**       IMPROVEMENTS ARE NEEDED IN THE ADMINISTRATION OF THE INDIAN                  11/30/93           *             27        20
               FELLOWSHIP PROGRAM
11-20202      CHANGES TO IMPACT AID PROGRAMS' SITE REVIEW PROCESS SHOULD                   09/30/94        4,382,000        26        85
               IMPROVE EFFICIENCY AND ASSURE BETTER USE OF PROGRAM FUNDS

OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES

09-28255***   ED CAN ALLOCATE SPECIAL EDUCATION FUNDS MORE EQUITABLY                       11/30/94           *             29        18

OFFICE OF POSTSECONDARY EDUCATION

11-80160      FINANCIAL ANALYSIS CERTIFICATION PROCESS NOT ADEQUATE TO PROTECT STUDENT     09/30/90       15,026,619        19        15
11-90050      ACCREDITING AGENCY RECOGNITION PROCESS DOES NOT SERVE AS AN EFFECTIVE        06/30/91           *             22         5
               CONTROL IN DETERMINING THE RELIABILITY OF AGENCIES THAT ACCREDIT NUMEROUS
               PROBLEM SCHOOLS
93-02**       ED SHOULD PROHIBIT CONFLICTS OF INTEREST BETWEEN GUARANTY AGENCIES AND       06/30/93           *             26        86
               AFFILIATED ORGANIZATIONS
11-00012      ADMINISTRATIVE CERTIFICATION PROCESS DOES NOT ADEQUATELY ASSURE THAT ALL     08/31/93           *             22         7
               SCHOOLS ARE CAPABLE OF ADMINISTERING TITLE IV FUNDS
11-00010      OFFICE OF STUDENT FINANCIAL ASSISTANCE DID NOT ASSURE THAT ALL INSTITUTIONS  09/30/93       33,800,000        24        63
               SUBMITTED AUDIT REPORTS OR THAT IT RECOVERED ALL MISSPENT FUNDS
11-20015      OPE'S LENDER AND GUARANTEE AGENCY OVERSIGHT FUNCTION SHOULD FOCUS MORE       09/30/93           *             26        15
               ON AUDIT FOLLOW-UP
11-90040      THE INSTITUTIONAL ELIGIBILITY PROCESS DOES NOT PROVIDE ADEQUATE ASSURANCE    09/30/93          482,000        22         6
               THAT ONLY ELIGIBLE SCHOOLS PARTICIPATE IN THE TITLE IV PROGRAMS
92-05**       ED NEEDS TO STRENGTHEN STUDENT LOAN CURE PROCEDURES                          09/30/93      154,000,000        24        12
92-10**       STRICTER STANDARDS NEEDED FOR GRANTING OF FORBEARANCES                       09/30/93           *             25         3
92-13**       ED NEEDS TO CHANGE THE LEGISLATIVE DEFINITION OF LOANS IN REPAYMENT          01/31/94           *             25         5
93-07**       THE SECRETARY'S DEFAULT REDUCTION INITIATIVE - AN ALTERNATIVE APPROACH       03/31/94           *             27        18
               TO IMPLEMENTING SANCTIONS
05-20075      EFFECTIVENESS OF THE REGIONAL INSTITUTIONAL REVIEW BRANCHES' MONITORING OF   08/31/94           *             28        19
               INSTITUTIONS PARTICIPATING IN THE STUDENT FINANCIAL ASSISTANCE PROGRAMS
09-40003      WHY USE PELL GRANTS FOR INSTRUCTION IN ENGLISH AS A SECOND LANGUAGE?         10/31/94           *             29        15
               TAXPAYERS PAY MORE AND STUDENTS GET LESS
17-30302      FINANCIAL AUDIT: FEDERAL FAMILY EDUCATION LOAN PROGRAM'S FINANCIAL STATEMNTS 10/31/94           *             29        16
               FOR FISCAL YEARS 1993 AND 1992
11-40000      INELIGIBLE, NON-U.S. CITIZENS RECEIVED $70 MILLION                           12/31/94      116,000,000        29        16
               IN FEDERAL PELL GRANTS

OFFICE OF VOCATIONAL AND ADULT EDUCATION

92-04**       THE ALLOCATION FORMULA FOR ADULT EDUCATION SHOULD BE REVISED                 06/30/92        2,300,000        24        65
               IN ORDER TO DISTRIBUTE THE FUNDS MORE EQUITABLY

OFFICE OF THE CHIEF FINANCIAL OFFICER

11-00333      GREATER EMPHASIS NEEDED TO DEOBLIGATE UNEXPENDED CONTRACT                    03/31/94        7,500,000        26        17
               FUNDS AND CLOSE OUT CONTRACTS ON TIME

OFFICE OF THE DEPUTY SECRETARY

03-20200      REVIEW OF SELECTED U.S. DEPARTMENT OF EDUCATION FELLOWSHIP                   08/31/94            *            29        19
               PROGRAMS ADMINISTERED BY THE REHABILITATION SERVICES
               ADMINISTRATION, THE OFFICE OF HIGHER EDUCATION, AND THE
               OFFICE OF INDIAN EDUCATION



  * Non-monetary findings only
 ** Management improvement report
*** Requires legislative action