RESULTS IN BRIEF
The California Department of Education (department) has mismanaged oversight of the federal adult education program in the State. As a result of its ineffective monitoring practices, the department has paid community-based organizations (CBOs) for services these organizations cannot substantiate. Although the department claims it monitors its service providers, 8 of 10 CBOs we reviewed could not document the number of class hours for which they received federal funds in at least one of the last five years, and none could consistently demonstrate gains in skill for the students they claimed to have educated. In addition, the department's grant award process yielded inconsistent decisions that leave the department open to charges of favoritism.
The department is making significant changes to the adult education program for fiscal year 1999-2000; however, these changes may not resolve past problems and could even create new ones. The new award grading process, though an improvement on the old method, must still be implemented. Additionally, drafted monitoring procedures do not include steps to determine whether claimed services are documented. Meanwhile, new eligibility requirements and payment rates, intended to improve the accountability of service providers, could result in a drop in the number of students served-especially students with the least skills who most need these educational services. Finally, the department will need to reassess its new rate structure and award process because earmarking of federal adult education funds in the State's fiscal year 1999-2000 budget is much more restrictive than the department expected.
To ensure that service providers maintain appropriate evidence to support their claims for payment, the department should do the following:
The California Department of Education expresses concern with the perspective presented in our report and believes it should be given more credit for changes it has undertaken since March 1998. It also takes exception with the accuracy of some of our findings. It does not, however, disagree with any of our recommendations.