B-303845, Department of Education -- Grant Extensions, January 3, 2006

B-303845 Jan 03, 2006 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights 1. Department of Education's 4-year extension of a 5-year grant made to an Historically Black Graduate Institution (HBGI) was improper given the plain language of the authorizing statute limiting grants to HBGIs to a period not to exceed 5 years. 20 U.S.C. sect. 1063b(b). 2. Department of Education's 4-year extension of a 5-year grant made to an Historically Black College and University (HBCU) amounted to an improper waiver of its regulations, which limited the duration of HBCU grant periods to 5 years. 34 C.F.R. sect. 608.11. View Decision B-303845, Department of Education -- Grant Extensions, January 3, 2006 Decision Matter of: Department of Education -- Grant Extensions File: B-303845 Date: January 3, 2006 DIGEST 1. Department of Education's 4-year extension of a 5-year grant made to an Historically Black Graduate Institution (HBGI) was improper given the plain language of the authorizing statute limiting grants to HBGIs to a period not to exceed 5 years. 20 U.S.C. sect. 1063b(b). 2. Department of Education's 4-year extension of a 5-year grant made to an Historically Black College and University (HBCU) amounted to an improper waiver of its regulations, which limited the duration of HBCU grant periods to 5 years. 34 C.F.R. sect. 608.11. DECISION Between July 2003 and August 2004, our Office undertook an examination of the Department of Education's (Education) management of grant programs to benefit low-income and minority serving postsecondary institutions authorized by Titles III and V of the Higher Education Act of 1965 (HEA), Pub. L. No. 89-329, 79 Stat. 1219 (Nov. 8, 1965), as amended, 20 U.S.C. sect. 1001 (2000). GAO, Low-Income and Minority Serving Institutions: Department of Education Could Improve Its Monitoring and Assistance, GAO-04-961 (Washington, D.C.: Sept. 21, 2004). During the course of that review, we became aware that, despite apparent statutory and regulatory limitations on grants to Historically Black Colleges and Universities (HBCU) and Historically Black Graduate Institutions (HBGI), Education, in some cases, had made 4-year –extensions— to the original 5'year grants awarded to those institutions. For the reasons explained below, we conclude that these extensions were improper. Education should strictly adhere to the duration restrictions for grant periods as set up in the authorizing legislation and implementing regulations, and terminate grants improperly extended. If, at that time, Education determines that additional assistance is warranted, Education could award a new grant to that institution. In the alternative, Education may wish to seek legislative changes that would allow for extensions to 5-year grants. BACKGROUND Title III, Part B of the Higher Education Act of 1965, as amended,[1] 20 U.S.C. sections 1060--1063c, contains provisions which provide for and govern grants to HBCUs and HBGIs. Section 1063b, which specifically applies to HBGIs, provides that –[g]rants shall be made for a period not to exceed 5 years.— 20 U.S.C. sect. 1063b(b). The Act does not contain a similar limitation regarding grant duration for HBCUs. See 20 U.S.C. sections 1060--1063, 1063a, 1063c. Education's implementing regulations, however, provide that grants to both HBCUs and HBGIs may be awarded –for a period of up to five academic years.— 34 C.F.R. sect. 608.11 (HBCUs),[2] sect. 609.11(HBGIs) (2004). In our 2004 review of Education's management of Title III and Title V grant programs, we found that grantees commonly reported difficulties implementing their grant projects, including problems related to hiring and staffing, –construction delays, challenges implementing technology and distance learning, and state budget shortages.— GAO-04-961 at 13. As a result of these challenges, –grantees often needed additional time to complete planned activities.— Id. We learned that Education, in some cases, had extended grants to HBCUs and HBGIs for an additional 4 years beyond their initial five-year period, that is, gave them 4 more years in which to obligate grant funds awarded in the original 5-year grant which were not obligated at the end of the 5'year grant period. GAO-04-961 at 14, fn.7; letter from Hubert Davis, Director, Institutional Development and Undergraduate Education Service, Education, to HBCU/HBGI Presidents, Sept. 2, 2003. Given that the plain language of the authorizing legislation for HGBIs and the implementing regulations for HBCUs and HBGIs limit the duration of grants to HBCUs and HBGIs to no more than 5 years, we asked Education's General Counsel, in October 2004, for his response to a series of questions regarding these extensions. Letter from Dayna K. Shah, Associate General Counsel, GAO, to Brian W. Jones, General Counsel, Department of Education, Oct.