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Federal Audit Questions Scholars Program in Texas

By Christina A. Samuels — June 14, 2005 1 min read

A Department of Education audit of the Center for State Scholars, an Austin, Texas-based program designed to encourage high school students to take rigorous classes, shows that program administrators did not properly account for $1.09 million in federal funds and may not have the capability to handle the program in the future.

In 2002, the Education Department awarded the Texas Business and Education Coalition a four-year grant totaling $9.6 million to administer the Center for State Scholars, a program authorized under the Carl D. Perkins Vocational and Technical Education Act.

According to a June 1 audit report from the department’s inspector general’s office, the program has had problems with cash management and expenses. The audit recommends the department work with the center to figure out how a $174,000 funding shortfall can be addressed without using future grant funds.

In a response included in the audit report, center representatives say they are working to fix the problems discovered by the audit.

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