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B-289801 1 (2002-12-30)

handle is hein.gao/gaocrptaodv0001 and id is 1 raw text is: 




          GAO
,Accountability * Integrity * Reliability
United States General Accounting Office
Washington, DC 20548


         B-289801





         December 30, 2002

         The Honorable George Miller
         Ranking Minority Member
         Committee on Education and the Workforce
         House of Representatives

         The Honorable David Obey
         Ranking Minority Member
         Committee on Appropriations
         House of Representatives

         Subject: U.S. Department of Education's Use of Fiscal Year Appropriations to Award
                  Multiple Year Grants

         You asked for our opinion regarding the Department of Education's (Education) use
         of appropriations available for only one fiscal year to fund grant awards for multiple
         years for the Gaining Early Awareness and Readiness for Undergraduate Program
         (GEAR UP) and the Early Childhood Educator Professional Development Program.
         As you are aware, this question raises the issue of whether the bona fide need rule
         prohibits award of multiyear grants with fiscal year money.

         For the reasons explained below, we conclude that (1) for grants, the principle of
         severability is irrelevant to a bona fide need determination, (2) a bona fide need
         analysis in the grant context focuses on whether the grants are made during the
         period of availability of the appropriation charged and further the authorized
         purposes of program legislation, (3) beginning in fiscal year 2002, Education's award
         of Early Childhood Educator program grants up to 4 years in duration is explicitly
         permitted by program authority and fulfills a bona fide need of the period for which
         the funds used are available, and (4) Education's award of 5-year GEAR UP grants
         during fiscal year 2001 and 2002 and 2-year Early Childhood Educator grants during
         fiscal year 2001 is in accordance with the program legislation and fulfills a bona fide
         need of the period for which the funds used are available.

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