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B-131587 1 (1973-02-28)

handle is hein.gao/gaobaaghl0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 FEDERAL PERSONNEL AND COMPENSATION DIVISION FEB 2 4 '173 LM096450 The Honorable Elliot L. Richardson Secretary of Defense 7- Dear Mr. Secretary: In our current review of the managenme Ln fhaO, $eas Dependents School System, we found that at Bahrain tuition charges°for outside sMtdents (those not sponsored by the U.S. Government) were resulting in losses to the Government. Al- though our review is still underway, we are bringing this matter to your attention now, because prompt action in cor- recting these charges can minimize the Government's losses. The Government may lose about $280,000 this school year because the United States Dependents Schools, European Area (USDESEA), do not charge outside students at its school on Bahrain Island in the Persian Gulf sufficient tuition. USDESEA computed the per pupil cost of operating that school for the 1972-73 school year at $1,733; the amount charged for each outside student is $982. The $982 rate is the average cost per student for all USDESEA schools and is about $750 per student short of recovering the full cost incurred. We believe that a tuition billing rate based on -actual costs should be used for the Bahrain school, where nearly three-quarters of the students are not dependents of Govern- ment employees. EXPANSION OF BAHRAIN SCHOOL FOR OUTSIDE STUDENTS In August 1972 the Assistant Secretary of Defense (Man- power and Reserve Affairs) authorized USDESEA to expand the school from grade 8 to grade 12 and to hire the additional staff needed to educate outside students who would attend. This was an exception to the normal policy that such students

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