prompt_front: You are given two reports by the government agency.



Question: Write a one-page summary of the report 1.

Report 1: T he unemployment insurance (UI) system has two primary objectives: (1) to provide temporary, partial wage replacement for involuntarily unemployed workers and (2) to stabilize the economy during recessions  In support of these goals, several UI programs provide benefits for eligible unemployed workers  In general, when eligible workers lose their jobs, the joint federal-state Unemployment Compensation (UC) program may provide up to 26 weeks of income support through regular UC benefit payments  UC benefits may be extended for up to 13 weeks or 20 weeks by the Extended Benefit (EB) program if certain economic situations exist within the state  As of the date of this publication, although both the UC and EB programs are authorized, no state is in an active EB period  For an overview of EB, see the Appendix   The Social Security Act of 1935 (P L  74-271) authorizes the joint federal-state UC program to provide unemployment benefits  Most states provide up to a maximum of 26 weeks of UC benefits  Former federal workers may be eligible for unemployment benefits through the Unemployment Compensation for Federal Employees (UCFE) program  Former U S  military servicemembers may be eligible for unemployment benefits through the Unemployment Compensation for Ex-Servicemembers (UCX) program  The Emergency Unemployment Compensation Act of 1991 ( P L  102-164 ) provides that ex-servicemembers be treated the same as other unemployed workers with respect to benefit levels, the waiting period for benefits, and benefit duration  Although federal laws and regulations provide broad guidelines on UC benefit coverage, eligibility, and determination, the specifics regarding UC benefits are determined by each state  This results in essentially 53 different programs  Generally, UC eligibility is based on attaining qualified wages and employment in covered work over a 12-month period (called a base period) prior to unemployment  All states require a worker to have earned a certain amount of wages or to have worked for a certain period of time (or both) within the base period to be eligible to receive any UC benefits  The methods states use to determine eligibility vary greatly  Most state benefit formulas replace approximately half of a claimant's average weekly wage up to a weekly maximum  Additionally, each state's UC law requires individuals to have lost their jobs through no fault of their own, and recipients must be able to work, available for work, and actively seeking work  These eligibility requirements help ensure that UC benefits are directed toward workers with significant labor market experience and who are unemployed because of economic conditions  The UC program is financed by federal taxes under the Federal Unemployment Tax Act (FUTA) and by state payroll taxes under each state's State Unemployment Tax Act (SUTA)  The 0 6% effective net FUTA tax paid by employers on the first $7,000 of each employee's earnings (equaling no more than $42 per worker per year) funds federal and state administrative costs, loans to insolvent state UC accounts, the federal share (50%) of EB payments, and state employment services  SUTA taxes on employers are limited by federal law to funding regular UC benefits and the state share (50%) of EB payments  Federal law requires that the state tax be on at least the first $7,000 of each employee's earnings and that the maximum state tax rate be at least 5 4%  Federal law also requires each employer's state tax rate to be based on the amount of UC paid to former employees (known as "experience rating")  Within these broad requirements, each state has great flexibility in determining its SUTA structure  Generally, the more UC benefits paid out to its former employees, the higher the tax rate of the employer, up to a maximum established by state law  Funds from FUTA and SUTA are deposited in the appropriate accounts within the Unemployment Trust Fund (UTF)  The sequester order required by the Budget Control Act of 2011 (BCA; P L  112-25 ) and implemented on March 1, 2013 (after being delayed by P L  112-240 ), affected some but not all types of UI expenditures  Regular UC, UCX, and UCFE payments are not subject to the sequester reductions  EB and most forms of administrative funding are subject to the sequester reductions  The FY2019 sequestration order requires a 6 2% reduction in all nonexempt nondefense mandatory expenditures, but no sequestration reductions are applicable to discretionary programs, projects, and activities  As a result, EB expenditures are required to be reduced 6 2% (only on the federal share of EB benefits) for weeks of unemployment during FY2019  As of January 22, 2019, EB has not been activated in any state during FY2019  The lapse in federal appropriations that occurred from December 22, 2018, until January 25, 2019, caused a partial government shutdown  As a result, during this lapse in appropriations, agencies without funding furloughed federal employees, and many federal employees excepted from furlough were working without pay  Furloughed federal employees may be eligible for UCFE benefits  States are required to operate the UCFE program under the same terms and conditions that apply to regular state UC  Therefore, UCFE eligibility is determined under the laws of the state in which an individual's official duty station in federal civilian service is located  Federal employees who are in furlough status on account of a government shutdown are generally treated by state law as laid off with an expectation of recall  Depending on state laws and regulations, the state may have an option to not require federal employees to search for work given an expected recall  However, according to guidance from U S  Department of Labor (DOL), excepted federal employees who are performing services (but working without pay) would generally be ineligible for UCFE benefits based on states' definitions of "unemployment " Private-sector workers who are furloughed or laid off due to the partial government shutdown because they were employed by government contractors or other businesses may be eligible for regular UC benefits  UC eligibility for these workers would be based on the requirements set out under the state laws in the state where they had worked  In this climate, there has been congressional interest in assisting furloughed and excepted federal employees through the UI system  For example, as described below in the section on " Unemployment Compensation for Excepted Federal Employees During a Government Shutdown ," there are proposals to provide new authority to pay UCFE benefits to excepted federal workers who are working without pay  The most recent lapse in federal appropriations began December 22, 2018, and ended on January 25, 2019, with the enactment of H J Res  28   Because retroactive pay for furloughed and excepted federal employees was authorized under S  24 , the Government Employee Fair Treatment Act of 2019 (enacted January 16, 2019), UCFE payments made to federal employee claimants during this lapse in appropriations may be deemed an overpayment, subject to state UC laws regarding overpayment recovery  According to guidance from the Office of Personnel Management on this issue The state UI agency will determine whether or not an overpayment exists and, generally, the recovery of the UCFE overpayment is a matter for state action under its law; however, some state UI laws require the employer to recover such overpayment by collecting the overpayment amount from the employee  The Federal and state agencies will need to coordinate to determine the required action in accordance with the individual state UI law  Federal agencies are encouraged to develop lists or spreadsheets that can be provided to the state(s) containing the employees' names, social security numbers, and the amounts and periods of time covered by the retroactive payment  If a recession is deep enough and if state unemployment tax (SUTA) revenue is inadequate for long periods of time, states may have insufficient funds to pay for UC benefits  Federal law, which requires states to pay these benefits, provides a loan mechanism within the UTF framework that an insolvent state may use to meet its UC benefit payment obligations  States must pay back these loans  If the loans are not paid back quickly (depending on the timing of the beginning of the loan period), states may face interest charges, and states' employers may face increased net FUTA rates until the loans are repaid  The U S  Virgin Islands is the only jurisdiction with an outstanding loan  As of January 18, 2019, it had an outstanding loan of $68 4 million from the federal accounts within the UTF  At the end of 2017, fewer than half of states (24) had accrued enough funds in their accounts to meet or exceed the minimally solvent standard of an average high cost multiple (AHCM) of 1 0 in order to be prepared for a recession  Beginning in FY2015, DOL funded state efforts "addressing individual reemployment needs of UI claimants, and working to prevent and detect UI overpayments" through the voluntary Reemployment Services and Eligibility Assessment (RESEA) program  RESEA provides funding to states to conduct in-person interviews with selected UI claimants to (1) assure that claimants are complying with the eligibility rules, (2) determine if reemployment services are needed for the claimant to secure future employment, (3) refer the individual to reemployment services as necessary, and (4) provide labor market information that addresses the claimant's specific needs  Section 30206 of P L  115-123 codified the authority for DOL to administer a RESEA program  It also set out various requirements for states to use certain types of evidence-based interventions for UI claimants under RESEA and allocated discretionary funding for RESEA across three categories (base funding, outcome payments, and research and technical assistance)  State RESEA programs must include reasonable notice and accommodations to participating UI beneficiaries  On April 4, 2019, DOL published a proposed methodology to allocate base RESEA funds and outcome payments  DOL requested state and public comments on this proposal by May 6, 2019  The President's budget for FY2020 proposes changes to several aspects of the UI system  It would create a new required standard for state account balances within the UTF and a new benefit entitlement for paid parental leave financed through state unemployment taxes  The President's FY2020 budget also proposes a set of additional integrity measures, including the required use of certain databases to confirm UC eligibility and requiring Social Security Disability Insurance (SSDI) benefits offset UI benefits  The President's budget proposal for FY2020 would require states to maintain a minimum level of solvency in their UTF account balances to be at least half (0 5) of the state's AHCM  The proposal would alter the rules for calculating the net FUTA rate, requiring a higher net FUTA rate on a state's employers if that state maintained an AHCM of less than 0 5 on January 1 of two or more consecutive years  The additional FUTA revenue would be deposited into the state UTF account and would be terminated once the state met the 0 5 AHCM criteria  The President's budget proposal for FY2020 would require states to establish a paid parental leave benefit by 2020, using the UC program as its base for an administrative framework  States would be required to provide six weeks of benefits to a worker on leave or otherwise absent from work for the birth or adoption of the worker's child  States would have discretion to determine the parameters of eligibility and financing for this new paid parental leave benefit  The President's 2020 budget would require states to use three specific data sources to confirm an individual's eligibility for UC benefits: the State Information Data Exchange System (SIDES, administered by Information Technology Support Center [ITSC] and DOL); the National Directory for New Hires (NDNH, administered by the Department of Health and Human Services); and the Prisoner Update Processing System (PUPS, administered by the Social Security Administration)  The proposal would create several additional integrity measures, including giving the Secretary of Labor the authority to implement new corrective action measures in response to poor state administrative performance within the program; allowing states to retain a percentage of UC overpayments for program integrity use; requiring states to deposit all UC penalty and interest payments into a special state fund, with these funds required to be used for improving state UI administration as well as providing reemployment services for UI claimants; and offsetting SSDI benefits to account for concurrent receipt of UI benefits  Section 2105 of the Middle Class Tax Relief and Job Creation Act of 2012 ( P L  112-96 ; February 22, 2012) amended federal law to allow states to conduct two types of drug testing  First, it expanded the long-standing state option to disqualify UC applicants who were discharged from employment with their most recent employer (as defined under state law) for unlawful drug use by allowing states to drug test these applicants to determine UC benefit eligibility or disqualification  Second, it allowed states to drug test UC applicants for whom suitable work (as defined under state law) is available only in an occupation that regularly conducts drug testing, to be determined under new regulations issued by the Secretary of Labor  As required by  P L  112-96 , on August 1, 2016, DOL promulgated  20 C F R  Part 620 ,  a new rule to implement the provisions of the law relating to the drug testing of UC applicants for whom suitable work (as defined under state law) is available only in an occupation that regularly conducts drug testing  Amid concerns voiced by stakeholders about the 2016 DOL rule, Congress repealed this UC drug testing rule using the Congressional Review Act (CRA) via H J Res  42 / P L  115-17   On November 5, 2018, DOL published a Notice of Proposed Rulemaking (NPRM) to reissue the rule identifying occupations that regularly conduct drug testing for purposes of Section 2105 of  P L  112-96   The CRA prohibits an agency from reissuing the rule in "substantially the same form" or issuing a "new rule that is substantially the same" as the disapproved rule, "unless the reissued or new rule is specifically authorized by a law enacted after the date of the joint resolution disapproving the original rule " Notably, this is the first time an agency has proposed to reissue a rule after the original version was disapproved under the CRA  According to the 2018 NPRM, DOL has addressed the reissue requirements of the CRA by proposing a substantially different and more flexible approach to the statutory requirements than the 2016 Rule, enabling states to enact legislation to require drug testing for a far larger group of UC applicants than the previous rule permitted  This flexibility is intended to respect the diversity of states' economies and the different roles played by employment drug testing in those economies  Comments on the proposed 2018 rule were required to be submitted by January 4, 2019  On January 16, 2019, Senator Richard Blumenthal introduced S  165 , the Federal Unemployment Compensation Equity Act of 2019  This proposal would amend UCFE law and create a new permanent UCFE eligibility category for excepted federal employees who are unpaid but required to work during a government shutdown due to a lapse in appropriations  During any shutdown beginning on or after December 22, 2018, all excepted federal workers would be deemed eligible for UCFE benefits  Additionally, these employees would not be subject to a one-week waiting period (otherwise often required under state laws) before UCFE benefits were to be paid  On January 23, 2019, Representative Debbie Dingell introduced H R  725 , the Pay Federal Workers Act  This proposal would also provide UCFE benefits in a similar manner to S  165 , including permanently amending 5 U S C  Chapter 85 to provide federal authority for these benefits  On January 23, 2019, Representative Anthony Brown introduced H R  720   This proposal would deem excepted federal employees during a government shutdown to be eligible for UCFE during FY2019  The authority to provide UCFE to these excepted workers would expire at the end of FY2019  On February 8, 2019, Representative Katie Hill introduced H R  1117 , the Shutdown Fairness Act of 2019  This proposal would deem excepted federal employees and unpaid military servicemembers during a government shutdown to be eligible for UCFE or UCX during FY2019  The authority to provide UCFE to these excepted workers would expire at the end of FY2019  On January 15, 2019, Senator Ron Wyden and Representative Danny Davis introduced S  136 and H R  556 , the Economic Ladders to End Volatility and Advance Training and Employment Act of 2019 (the ELEVATE Act)   Among other provisions, this proposal would establish new self-employment and relocation assistance benefits for unemployed workers to be administered by the Social Security Administration, in consultation with DOL  The self-employment assistance benefits would provide weekly income replacement (half of prior earnings up to the maximum weekly benefit amount in the state) for up to of 26 weeks to individuals  They would be available to individuals who are (1) eligible for any type of UI benefit; or ineligible for any type of UI benefit, but became involuntarily unemployed over the previous 12 weeks; or were previously self-employed, but lost a hiring contract, and (2) have a viable business plan approved by their state department of labor, workforce board, or the Small Business Administration  Additionally, Section 3 of S  136 and H R  556 would provide up to $2,000 (or more, depending on family size) to fund to up to 90% of certain relocation expenses for eligible individuals and their families  In order to be eligible for this relocation assistance, an individual must be a (1) dislocated worker, (2) long-term unemployed individual, or (3) underemployed individual and also have filed a claim for relocation assistance and obtained suitable work with an expectation of obtaining such work in a new geographic region  On March 7, 2019, Representative Karen Bass introduced H R  1585 , the Violence Against Women Reauthorization Act of 2019  Among many other provisions, Section 703 of H R  1585 would require states to consider an individual who quit employment because of sexual harassment, domestic violence, sexual assault, or stalking to be eligible for UC benefits  The House passed H R  1585 on April 4, 2019  On March 14, 2019, Representative Stephanie Murphy introduced H R  1759 , the Building on Reemployment Improvements to Deliver Good Employment (BRIDGE) for Workers Act  This proposal would extend eligibility to any claimant of unemployment benefits, including those profiled as likely to exhaust benefits (rather than limiting eligibility to those who were profiled as likely to exhaust benefits)  The House passed H R  1759 on April 9, 2019  The Extended Benefit (EB) program was established by the Federal-State Extended Unemployment Compensation Act of 1970 (EUCA; P L  91-373) (26 U S C  §3304, note)  EUCA may extend receipt of unemployment benefits (extended benefits) at the state level if certain economic conditions exist within the state  As of the date of this publication, EB is not active in any state  Extended Benefit Triggers The EB program is triggered when a state's insured unemployment rate (IUR) or total unemployment rate (TUR) reaches certain levels  All states must pay up to 13 weeks of EB if the IUR for the previous 13 weeks is at least 5% and is 120% of the average of the rates for the same 13-week period in each of the two previous years  States may choose to enact two other optional thresholds  (States may choose one, two, or none ) If the state has chosen one or more of the EB trigger options, it would provide the following: Option 1—up to an additional 13 weeks of benefits if the state's IUR is at least 6%, regardless of previous years' averages  Option 2—up to an additional 13 weeks of benefits if the state's TUR is at least 6 5% and is at least 110% of the state's average TUR for the same 13 weeks in either of the previous two years; up to an additional 20 weeks of benefits if the state's TUR is at least 8% and is at least 110% of the state's average TUR for the same 13 weeks in either of the previous two years  EB benefits are not "grandfathered" (phased out) when a state triggers "off" the program  When a state triggers "off" of an EB period, all EB benefit payments in the state cease immediately regardless of individual entitlement  The EB benefit amount is equal to the eligible individual's weekly regular UC benefits  Under permanent law, FUTA finances half (50%) of the EB payments and 100% of EB administrative costs  States fund the other half (50%) of EB benefit costs through their SUTA  On March 7, 2019, Representative Karen Bass introduced H R  1585 , the Violence Against Women Reauthorization Act of 2019  Among many other provisions, Section 703 of H R  1585 would require states to consider an individual who quit employment because of sexual harassment, domestic violence, sexual assault, or stalking to be eligible for UC benefits  The House passed H R  1585 on April 4, 2019  On March 14, 2019, Representative Stephanie Murphy introduced H R  1759 , the Building on Reemployment Improvements to Deliver Good Employment (BRIDGE) for Workers Act  This proposal would extend eligibility to any claimant of unemployment benefits, including those profiled as likely to exhaust benefits (rather than limiting eligibility to those who were profiled as likely to exhaust benefits)  The House passed H R  1759 on April 9, 2019 


Report 2:  FSA staff from all four of our selected regional offices told us that they provisionally certify schools for a variety of reasons, including when a school submits a late compliance audit or when a recent compliance audit indicates that a school could potentially have significant problems  Generally, schools in provisional certification status are subject to additional monitoring by FSA compared to schools that have been fully certified  For example, Education officials said that if they have concerns about a provisionally certified school’s student withdrawal rate, they can add provisional conditions requiring the school to submit monthly enrollment rosters for review  Staff in two FSA regional offices told us that in other cases, if they have concerns about how a school is administering federal student aid or suspected fraud, they can put a school on provisional status and conduct a program review to collect more detailed information on compliance with federal requirements  Education data also show that most schools remain in provisional status the first time they are recertified—62 percent from 2006 to 2017  In contrast, FSA staff fully recertified over three-quarters of schools that applied for recertification a second time during the same time period (see table 2)  For more information on first and second recertification outcomes by school sector, see appendix II  We found that FSA generally relies on compliance audits as the only annual on-site review to determine how schools applying for recertification administer federal student aid  The audits provide direct information collected by independent auditors from school visits and file reviews examining how schools administer federal student aid and comply with program requirements  For example, OIG audit guidance directs auditors to check whether schools are distributing federal student aid to eligible students and accurately calculating student loan amounts  FSA officials and staff from all four of our selected regional offices said that compliance audits are a key source of information they use to assess a school’s administrative capability  Officials from Education’s OIG said that the quality of information in compliance audits varies substantially and depends on the auditor  The OIG has found quality problems in some of the compliance audits it selects—based on auditor and school risk factors—for its annual quality control reviews  Because the OIG selects higher risk audits to review, its reviews are more likely to detect problems, and OIG officials said they cannot make any conclusions about the overall prevalence of quality problems in compliance audits  However, our analysis of OIG quality review data found that of the 739 compliance audits reviewed by the OIG from fiscal years 2006 through 2017, the OIG passed 23 percent (173) and failed 59 percent (436)  An additional 18 percent (130) passed with deficiencies  For example, across the 41 compliance audits it reviewed in fiscal year 2016, the OIG identified 264 quality deficiencies with the auditor’s work, according to our analysis of quality reviews provided by the OIG  The most frequently cited issues in these 41 audits were: reporting (24 audits), such as lack of evidence that the auditor tested whether the school correctly reported student enrollment status; student eligibility (20 audits), such as lack of evidence that the auditor verified student school attendance; and administrative capability (19 audits), such as lack of evidence that the auditor determined whether the accreditor had been notified about a change in school ownership within 10 days  FSA officials also identified quality issues with the compliance audits of some schools  FSA headquarters officials and staff we interviewed in several regional offices said they have seen schools with significant program review findings that had not been identified in annual compliance audits  FSA staff said they have referred some compliance audits to the OIG for quality reviews when they have had questions about the thoroughness of an audit  We also found a couple of examples in our review of school certification documents in which the findings identified in a school’s compliance audit were different from the findings identified by FSA in a program review of the same school covering the same time period  In one case, FSA staff said they probably would have fully recertified the school if they had relied solely on the compliance audit  Instead, they used the program review to determine that the school should be provisionally recertified  Compliance audits and program review findings are based on a sample of student records, and FSA staff said some differences in findings might be explained by differences in the records reviewed  FSA and OIG officials cited several issues that can affect the quality of compliance audits  FSA and OIG officials we interviewed said that some auditors conducting compliance audits have insufficient training in federal student aid, which contributes to audit quality problems  OIG staff also said that even if an auditor meets the general training hour requirements for auditors, the training content may not be relevant for federal student aid audits  In addition, FSA and OIG officials said some schools— particularly smaller schools—tend to hire less experienced auditors in order to save money, often resulting in poor quality audits  FSA officials in most selected regional offices said that additional training on federal student aid for auditors who are new to or unfamiliar with federal student aid could help improve audit quality  FSA and the OIG recently have taken steps to address audit quality and the information available to FSA staff when making certification decisions  These efforts include: Training for auditors: The OIG has taken steps to enhance training offered to auditors of schools’ administration of federal student aid and is exploring opportunities to provide additional training  In December 2017, the OIG and the American Institute of Certified Public Accountants cosponsored training for auditors on the OIG’s 2016 revised guide for audits of for-profit schools, and other topics related to auditing federal student aid  The training included discussion of common audit quality issues and areas of highest risk  According to an OIG official, about 200 auditors attended, and after the event, the American Institute of Certified Public Accountants and the OIG posted a recording of the training to their websites to make it available to additional auditors  In addition, OIG officials said they maintain an email account—listed on the OIG website—through which auditors can ask questions and receive responses  In March 2018, the OIG posted frequently asked questions and answers to the website  Timeliness of OIG quality reviews: Both FSA and OIG officials said that the OIG has recently renewed efforts to issue compliance audit quality reviews more quickly, after several years in which staffing shortages and other issues led to some delayed quality reviews  Guidance to schools on selecting an auditor: OIG officials said that at the 2017 FSA training conference for school financial aid staff, they presented to more than 400 participants about factors schools should consider when hiring an auditor  For example, they suggested that schools verify the licenses of certified public accountants, ask about the types of engagements an auditing firm has conducted, request and check references, check for any actions that may have been taken against a firm, and ask whether the auditor has been subject to a previous review by the OIG or another agency  FSA officials said they expected to invite the OIG to present at future FSA conferences, and OIG officials said they were seeking additional opportunities to share information on auditor selection with schools, including a planned presentation to an association of postsecondary schools  FSA working group: FSA recently established a working group to update its guidance to FSA staff on how to coordinate with the OIG to address compliance audits with quality problems  Among other topics, the working group has consulted with the OIG about how schools are made aware of the OIG’s findings regarding the quality of their audits  FSA officials said that OIG officials have provided input and feedback on FSA’s proposed changes to the guidance  Audit guide revisions: In addition, OIG and FSA staff told us they expected the OIG’s 2016 revisions to the for-profit school audit guide to improve the quality of compliance audits for those schools  They said that because the revised guide clarified some issues that were confusing to auditors in the previous guide issued in 2000, auditors might be better able to implement the guidance  The audit guide revisions include more testing and reporting requirements, clarified procedures, and guidance on issues such as fraud reporting and coordinating financial and compliance audits  The 2016 revisions first applied to audits for fiscal years beginning after June 30, 2016, and FSA began receiving those audits at the end of 2017  In addition, although the OIG’s 2016 revisions only apply to audits of for-profit schools, FSA officials said they planned to establish a working group to consider improvements to audit guidance for public and nonprofit schools  FSA and OIG efforts to address audit quality could help ensure that compliance audits provide accurate and reliable information on school administrative capability for Education’s recertification decisions  We provided a draft of this report to Education for review and comment  Education’s Office of Inspector General provided technical comments, which we considered and incorporated as appropriate  Education did not provide other comments on the report  We are sending copies of this report to the appropriate congressional committees; the Secretary of Education; and other interested parties  In addition, the report is available at no charge on the GAO website at http://www gao gov  If you or your staff have any questions about this report, please contact me at (617) 788-0534 or emreyarrasm@gao gov  Contact points for our Offices of Congressional Relations and Public Affairs may be found on the last page of this report  GAO staff who made key contributions to this report are listed in appendix III  In addition to the contact named above, Michelle St  Pierre (Assistant Director), Kristy Kennedy (Analyst-in-Charge), Edward Bodine, Marissa Jones, and Mark Ward made significant contributions  Also contributing to this report were Susan Aschoff, Deborah Bland, Nagla’a El-Hodiri, Monika Gomez, Sheila R  McCoy, Jessica Orr, Mimi Nguyen, John Mingus, Rhiannon Patterson, Monica Savoy, Benjamin Sinoff, and Rosemary Torres Lerma 

ground_truth: The 116th Congress has begun to consider several issues related to two programs in the unemployment insurance (UI) system: Unemployment Compensation (UC) and Unemployment Compensation for Federal Employees (UCFE). The lapse in federal appropriations that occurred from December 22, 2018, to January 25, 2019, created a partial government shutdown. As a result, agencies without funding furloughed many federal employees, and many federal employees excepted from furlough were working without pay during the lapse in appropriations. Furloughed federal employees may be eligible for UCFE benefits. Private-sector workers who are furloughed or laid off due to the partial government shutdown because they were employed by government contractors may be eligible for regular UC benefits. But, according to guidance from the U.S. Department of Labor (DOL), excepted federal employees who are performing services (without pay) would generally be ineligible for UCFE benefits based on states' definitions of "unemployment." In this climate, there has been congressional interest in assisting furloughed and excepted federal employees through the UI system. UI legislative issues currently facing the 116th Congress include the following: the effects of the FY2019 sequester order on UI programs and benefits, the role of UI in providing temporary income replacement during a government shutdown, state fiscal concerns related to financing UC benefits, reemployment services and eligibility assessments (RESEA), potential consideration of the UI proposals included in the President's FY2020 budget, and congressional oversight related to a proposed UC drug testing rule reissued by DOL after previously being disapproved using the Congressional Review Act. In the 116th Congress, policymakers have introduced legislation related to UCFE benefits in response to the recent partial government shutdown (S. 165, H.R. 720, H.R. 725, and H.R. 1117), legislation to provide self-employment and relocation assistance benefits (S. 136 and H.R. 556), legislation to require that states consider an individual who quit employment because of sexual harassment, domestic violence, sexual assault, or stalking to be eligible for UC benefits (H.R. 1585), and legislation to amend Title III of the Social Security Act to extend RESEA to all UC claimants (H.R. 1759). For a brief overview of UC, see CRS In Focus IF10336, The Fundamentals of Unemployment Compensation.

prompt_front: You are given two reports by the government agency.



Question: Write a one-page summary of the report 2.



Report 2: This report provides an overview of the FY2019 budget request and appropriations for the International Trade Administration (ITA), the U S  International Trade Commission (USITC), and the Office of the United States Trade Representative (USTR)  These three trade-related agencies are funded through the annual Commerce, Justice, Science, and Related Agencies (CJS) appropriations  This report also provides a review of these trade agencies' programs  When comparing the Administration's FY2019 request with FY2018 funding, one may want to consider that the Administration formulated its FY2019 budget request before full-year appropriations for FY2018 were enacted  In this report, FY2018 funding levels reflect the amounts appropriated in the Consolidated Appropriations Act, 2018 ( P L  115-141 ), enacted on March 23, 2018  The Consolidated Appropriations Act, 2018, provided $482 0 million in direct funding for ITA, $93 7 million for USTIC, and a total of $72 6 million for USTR for FY2018  The FY2018 appropriation for the three CJS trade-related agencies totaled $648 3 million  The Consolidated Appropriations Act, 2019, provided $484 0 million in direct appropriations for ITA, $95 0 million in funding for USITC, and a total of $68 0 million for USTR  The FY2019 appropriations for three CJS trade-related agencies totaled $647 0 million, a 0 2% decrease from FY2018 appropriations  See the Appendix for enacted budget authority for the trade-related agencies for FY2009-FY2019  The President submitted his FY2019 budget request to Congress on February 12, 2018  In it, the Administration requested a total of $590 8 million for the three CJS trade-related agencies (see Table 1 )  This request represented an 8 9% decrease in funding from the FY2018 appropriated amount  The request included reduced funding for all three trade agencies: $440 1 million in direct funding for ITA (an 8 7% decrease from the FY2018 appropriation), $87 6 million for USITC (a 6 5% decrease), and $63 0 million for USTR (a 13 2% decrease)  Despite the proposed overall decrease in funding for CJS trade-related agencies, the Administration proposed increasing some trade enforcement activities within ITA and USTR  For ITA, the Administration proposed increasing trade enforcement activities while reducing funding for certain export promotion activities  For USTR, the Administration requested funds to increase staffing; however, the request did not include a request for funding to be drawn from the Trade Enforcement Trust Fund  (For a description of the " Trade Enforcement Trust Fund ," see section below ) The President's budget did not provide a rationale for requesting a decrease in funding for USITC  A more detailed overview of these agencies' FY2019 budget requests is provided below  The House and Senate Appropriations Committees reported their CJS appropriation bills in the spring of 2018  Both committees largely declined the budget cuts requested by the Administration for these three trade agencies  (See Table 1  ) The House Committee on Appropriations reported H R  5952 on May 17, 2018  The House committee bill included a total of $647 6 million for the three trade-related agencies, which was $56 8 million more (9 6%) than the Administration's request and $0 7 million less (-0 1%) than the FY2018-enacted amount  The House committee recommended $480 0 million in direct funding for ITA, $95 0 million for USTIC, and a total of $72 6 million for USTR  The Senate Committee on Appropriations reported S  3072 on June 14, 2018  The Senate bill included a total of $655 6 million for the three agencies, which was $64 8 million (11 0%) more than the Administration's request and $7 3 million (1 1%) more than the FY2018-enacted appropriation  The Senate committee recommended $488 0 million in direct funding for ITA, $95 0 million for USITC, and a total of $72 6 million for USTR  Through February 15, 2019, the CJS trade-related agencies operated under continuing resolutions (CR)—with the exception of a three-week lapse in funding when agencies halted most operations  Congress passed final FY2019 appropriations in the Consolidated Appropriations Act, 2019 ( P L  116-6 ), which was signed into law on February 15, 2019  The act included a total of $647 0 million in funding for the three trade-related agencies—a 0 2% decrease from FY2018 appropriations  For FY2019, the Consolidated Appropriations Act, 2019, included $484 0 million in direct appropriations for ITA (a 0 4% increase from the FY2018 appropriation), $95 0 million in funding for USITC (a 1 4% increase), and a total of $68 0 million for USTR (a 0 2% decrease)  Within the Department of Commerce, ITA's mission is to improve U S  prosperity by strengthening the competitiveness of U S  industry, promoting trade and investment, and ensuring compliance with trade laws and agreements  ITA provides export promotion services; works to enforce and ensure compliance with trade laws and agreements; administers trade remedies such as antidumping and countervailing duties; and provides analytical support for ongoing trade negotiations  ITA went through a major organizational change in October 2013 in which it consolidated four organizational units into three more functionally aligned units: (1) Global Markets; (2) Industry and Analysis; and (3) Enforcement and Compliance  ITA also has a fourth organizational unit, the Executive and Administrative Directorate, which is responsible for providing policy leadership, information technology support, and administration services for all of ITA  ( Table A-1 shows budget amounts for ITA by unit between FY2009 and FY2019 ) For FY2019, the Administration requested $440 1 million for ITA in direct funding, with an additional $11 0 million to be collected in user fees, for a total of $451 1 million in authorized spending  The request for direct funding represents a $41 9 million decrease (-8 7%) from the FY2018-enacted amount ($482 0 million)  According to ITA's budget justification, the Administration proposed increasing ITA's enforcement and compliance efforts in FY2019, while deemphasizing other initiatives, such as export promotion  The Administration specifically proposed closing some domestic and international offices of the United States and Foreign Commercial Service (US&FCS)  The House committee-reported H R  5952 proposed $480 0 million for ITA in direct funding, with an additional $11 0 million to be collected from user fees, for a total of $491 0 million in authorized spending  The amount in direct funding proposed by the House Committee on Appropriations was $39 9 million (9 1%) more than the Administration's request and $2 0 million less (-0 4%) than the FY2018-enacted amount  The Senate committee-reported S  3072 included $488 0 million in direct funding for ITA, with an additional $11 0 million in user fees, for a total of $499 0 million in authorized spending  The amount in direct funding proposed by the Senate Committee on Appropriations was $47 9 million (10 9%) more than the Administration's request and $6 0 million (1 2%) more than the FY2018-enacted amount  The Consolidated Appropriations Act, 2019 ( P L  116-6 ) provided $484 0 million in direct appropriations for ITA, with an additional $11 0 million to be collected in user fees, for a total of $495 0 in authorized spending  The act provided $2 million more (0 4%) in direct appropriations for ITA than the FY2018-enacted amount and $43 9 million more (10 0%) than the Administration's request  ITA's Global Markets (GM) unit is a combination of the United States and Foreign Commercial Service (US&FCS) unit, a program that provides export promotion services to U S  businesses, and SelectUSA, a program that works to attract foreign investment into the United States  Through US&FCS, GM promotes U S  exports by helping U S  exporters research foreign markets and identify opportunities abroad  GM's country and regional experts―in domestic and overseas offices—help to advise U S  companies on market access, local standards, and regulations  The unit also helps to make connections through business-to-business trade shows, fairs, and missions  GM is designed to advance U S  commercial interests by engaging with foreign governments and U S  businesses, identifying and resolving market barriers, and leading efforts that advocate for U S  firms with foreign governments  Through its SelectUSA program, the GM unit also promotes the United States as a destination for foreign investment  (For more on SelectUSA, see section below, " SelectUSA Program  ") For FY2019, the Administration proposed reducing funding for the Global Markets unit  The Administration requested $276 5 million for Global Markets in direct funding, a 13 4% decrease from the FY2018-enacted appropriation  In its FY2019 budget submission, ITA proposed "rescaling export promotion" activities in the GM unit by reducing staff and its domestic and overseas offices, with a total reduction of 133 positions  The budget submission did not indicate how many or which domestic and overseas offices it was proposing to close  The House and Senate Appropriation Committees did not adopt the proposed cuts  The House Appropriations Committee recommended $319 0 million for the Global Markets unit for FY2019  This was $42 5 million (15 4%) more than the Administration's request  According to the committee report, "the recommendation does not adopt the proposal to reduce U S  and Foreign Commercial Service staff or close overseas offices or U S  Export Assistance Centers " The Senate Appropriations Committee report did not provide an exact funding amount, but recommended that ITA "fund US&FCS, and its core mission of export promotion, at the highest possible level in fiscal year 2019, and at no less than the amount provided in fiscal year 2018 " Like the House committee, the Senate committee did not adopt the Administration's proposal to close offices  The Senate committee report specifically noted, "No offices shall be closed in fiscal year 2019 unless the Committee approves a reprogramming request to close such office or offices  Additionally, the Committee will not approve requests to close any domestic offices, called U S  Export Assistance Centers, if such Center is the only one located in a given State " According to the conference report accompanying the Consolidated Appropriations Act, 2019 ( P L  116-6 ), the final agreement for FY2019 appropriations included "no less than $320 million" in funding for Global Markets and required ITA to report quarterly to the Committees on staffing levels within the US&FCS  ITA's Industry and Analysis unit brings together ITA's industry, trade, and economic experts to advance the competitiveness of U S  industries through the development and execution of international trade and investment policies, export promotion strategies, and investment promotion  It develops economic and international policy analysis to improve market access for U S  businesses, and designs and implements trade and investment promotion programs  The unit serves as the primary liaison between U S  industries and the federal government on trade and investment promotion  It administers programs that support small and medium-sized enterprises, such as the Market Development Cooperator Program  For FY2019, the Administration requested $52 3 million for Industry and Analysis  The request is $3 4 million less than the FY2018 funding level  The Administration proposed refocusing some of the unit's priorities away from export promotion and toward trade enforcement  Specifically, the Administration proposed reducing activities related to trade missions, the International Buyer Program, and certified trade fairs, and eliminating Market Development Cooperator Program grants  The House committee proposed $52 0 million for Industry and Analysis  This represented $0 3 million less (-0 5%) than the Administration's request  The Senate committee-reported bill did not include a specific recommendation for Industry and Analysis  The Consolidated Appropriations Act, 2019 ( P L  116-6 ), did not provide an exact funding guidance for Industry and Analysis  The mission of ITA's Enforcement and Compliance unit is to enforce U S  trade laws and ensure compliance with negotiated international trade agreements  It is responsible for enforcing U S  antidumping and countervailing duty (AD/CVD) laws; overseeing a variety of programs and policies regarding the enforcement and administration of U S  trade remedy laws; assisting U S  industry and businesses with unfair trade matters; and administering the Foreign Trade Zone program and other U S  import programs  For FY2019, the Administration requested $90 6 million for the Enforcement and Compliance unit, an increase of $3 1 million (3 6%) from the FY2018-enacted amount  For the requested increase in funding, ITA cited the unit's increasing number of AD/CVD investigations, its new focus on self-initiating AD/CVD cases, and the increased workload due to the tariffs and investigations initiated through Section 232 of the Trade Expansion Act of 1962  The House Appropriations Committee proposed $85 5 million for Enforcement and Compliance  The House committee proposal represented $2 1 million less (-2 3%) than the Administration's request, and $1 0 million (1 1%) more than the FY2018-enacted amount   The Senate Committee on Appropriations recommended $91 5 million for Enforcement and Compliance  The Senate recommendation represented $0 9 million more than the Administration's request and $4 0 million more than the 2018-enacted amount  The Senate committee report noted that the committee was supportive of the Administration's request to self-initiate AD/CVD cases  For FY2019 appropriations, the conference report accompanying the Consolidated Appropriations Act, 2019 ( P L  116-6 ), included $88 5 million for Enforcement and Compliance  This amount was $1 0 million more (1 1%) than the FY2018 funding, and $2 1 million less (-2 1%) than the Administration's request  USITC is an independent, quasi-judicial agency responsible for conducting trade-related investigations and providing independent technical advice related to U S  international trade policy to Congress, the President, and the USTR  The commission (1) investigates and determines whether imports injure a domestic industry or violate U S  intellectual property rights; (2) provides independent tariff, trade, and competitiveness-related analysis to the President and Congress; and (3) maintains the U S  tariff schedule  USITC also serves as a federal resource for trade data and other trade policy information  It makes most of its information and analyses available to the public to promote understanding of competitiveness, international trade issues, and the role that international trade plays in the U S  economy  In addition to the President's budget request for the commission, USITC also has bypass authority to submit its budget directly to Congress without revision by the President, pursuant to Section 175 of the Trade Act of 1975  For FY2019, the President requested $87 6 million for USITC, which represented a $6 1 million decrease (-6 5%) from the FY2018-enacted amount ($93 7 million)  While the President requested a decrease in funding for USITC, the commission's independent budget submission—sent directly to Congress without revision by the President—requested $97 5 million for FY2019, an increase of $3 8 million (4 0%) from the FY2018-enacted amount  USITC cited the increasing number of import injury cases in the previous five years and projected that the caseload would increase further in FY2019  Both the House and Senate committee-reported bills recommended $95 0 million for USITC  This amount was $7 4 million (8 4%) more than the President's request and $1 3 million (1 4%) more than the FY2018-enacted amount  The Consolidated Appropriations Act, 2019 ( P L  116-6 ), provided $95 0 million for USITC, which was $7 4 million (8 4%) more than the President's request and $1 3 million (1 4%) more than the FY2018-enacted amount  USTR, located in the Executive Office of the President, is responsible for developing and coordinating U S  international trade and direct investment policies  USTR is the President's chief negotiator for international trade agreements, including commodity and direct investment negotiations  It negotiates directly with foreign governments to create trade agreements, resolve disputes, and participate in global trade policy organizations such as the World Trade Organization  It also meets with business groups, policymakers, and public interest groups on trade policy issues  In 2018, USTR led the negotiations for the modernization of the North American Free Trade Agreement (NAFTA) and the investigations into Chinese intellectual property practices  In addition to direct appropriations for USTR, supplementary funding for the agency is available through the congressionally established Trade Enforcement Trust Fund  For more detail on the trust fund, see section " Trade Enforcement Trust Fund ," below  For FY2019, the Administration requested $63 0 million for USTR's salaries and expenses, and no additional funding from the Trade Enforcement Trust Fund  The request represents a $9 6 million decrease (-13 2%) from the FY2018-enacted amounts ($72 6 million)  In the Administration's budget request, USTR outlined the Trump Administration's "aggressive trade agenda," and its goals of "(1) defending U S  national sovereignty over trade policy; (2) strictly enforcing U S  trade laws; (3) using all possible sources of leverage to encourage other countries to open their markets to U S  exports of goods and services, and protecting U S  intellectual property rights; and (4) negotiating better trade deals with countries in key markets around the world " Both the House and Senate committee-reported bills recommended a total of $72 6 million for USTR for FY2019  These proposals included $57 6 million for USTR's salaries and expenses and $15 0 million from the Trade Enforcement Trust Fund for enforcement activities authorized in Section 611 of the Trade Facilitation and Trade Enforcement Act of 2015 ( P L  114-125 )  The total proposals were $9 6 million (15 2%) more than the Administration's request, and were equal to the FY2018-enacted amount  The Consolidated Appropriations Act, 2019 ( P L  116-6 ), provided a total of $63 0 million for USTR, which included $53 0 million in salaries and expenses for USTR and an additional $15 0 million to be derived from the Trade Enforcement Trust Fund  The total funding was $4 6 million less (-6 3%) than the FY2018 appropriated amount  Over the past decade, Congress has provided funding for specific trade-related programs, including (1) China trade enforcement and compliance activities; (2) trade promotion and attracting foreign direct investment to the United States through ITA's SelectUSA program; and (3) trade enforcement activities through the Trade Enforcement Trust Fund and the Interagency Center on Trade Implementation, Monitoring, and Enforcement (ICTIME, formerly the Interagency Trade Enforcement Center (ITEC))  Since 2004, Congress has dedicated some of ITA's funding to AD/CVD enforcement and compliance activities with respect to China and other nonmarket economies  ITA's Office of China Compliance was established by the Consolidated Appropriations Act of 2004 ( P L  108-199 )  Its primary role has been to enforce U S  AD/CVD laws and to develop and implement other policies and programs aimed at countering unfair foreign trade practices in China  ITA's China Countervailing Duty Group was established in FY2009 to accommodate the workload that resulted from the application of countervailing duty law to imports from nonmarket economy countries  The Office of China Compliance is within the Enforcement and Compliance unit at ITA  ITA's FY2019 budget justification did not provide a breakdown of funding for its China AD/CVD activities  Both the House and Senate committee-reported bills included $16 4 million from ITA's funding for China AD/CVD enforcement and compliance activities for FY2019  The Consolidated Appropriations Act, 2019 ( P L  116-6 ), provided $16 4 million from ITA's funding for China AD/CVD enforcement and compliance activities for FY2019  This amount was equal to the FY2018-enacted amount  SelectUSA was created in 2011 and is now part of ITA's Global Markets unit  It coordinates investment-related resources across more than 20 federal agencies to (1) promote the United States as an investment market and (2) address investor climate concerns that may impede investment in the United States  The program serves as an information resource for international investors and advocates for U S  cities, states, and regions as investment destinations  ITA's budget justification did not provide a breakdown for requested funding for SelectUSA  The House committee-reported bill did not propose a specific funding amount for SelectUSA  The Senate committee report recommended $10 0 million in funding for SelectUSA, an amount equal to the FY2018-enacted amount  The Senate Committee on Appropriation proposed making funding contingent on (1) SelectUSA updating its protocol to ensure that its programs did not encourage foreign investments by state-owned entities into the United States and (2) SelectUSA reporting its updated protocol to the committee within 30 days of enactment of the bill  According to the conference report accompanying the Consolidated Appropriations Act, 2019 ( P L  116-6 ), the final agreement adopted the Senate committee report language regarding SelectUSA  ITA's Survey of International Air Travelers (SIAT) gathers statistics about air passenger travelers in the United States  These statistics are used across federal agencies, for a variety of purposes, such as to estimate the contribution of international travel to the economy, develop public policy on the travel industry, and forecast staffing needs at consulates and ports of entry  The Administration requested $5 0 million for FY2019 for SIAT to expand the survey and data collection  The Administration proposed that "$5 million in fee revenues collected from the surcharge on international travelers utilizing the Electronic System for Travel Authorization (ESTA) be redirected to fully fund the SIAT " The House committee-reported bill did not include a specific recommendation for SIAT  According to the Senate committee report, the Senate Committee on Appropriations did not adopt the Administration's proposal to seek alternative funding sources for SIAT and "direct[ed] ITA to continue funding SIAT out of its base budget  Within funds provided, ITA [was] encouraged to increase the sample size for SIAT " The Consolidated Appropriations Act, 2019 ( P L  116-6 ), and the accompanying conference report did not provide specific language regarding SIAT  In order to provide additional funding for USTR's trade enforcement activities, Congress established the Trade Enforcement Trust Fund (TETF) in 2016  In Section 611 of the Trade Facilitation and Trade Enforcement Act of 2015 ( P L  114-125 ), Congress set up the trust fund and outlined authorized uses of the funds  According to Section 611(d), USTR can use funds from the TETF to monitor and enforce trade agreements and WTO commitments and to support trade capacity-building assistance to help partner countries meet their free-trade agreement obligations and commitments  USTR can also transfer funds to select federal agencies for trade enforcement activities authorized in Section 611(d) of the Trade Facilitation and Trade Enforcement Act of 2015  For FY2019, the Administration requested no funding to be derived from the TETF; the FY2018-enacted amount was $15 0 million  Both the House and Senate committee bills proposed $15 0 million from the TETF for enforcement activities authorized in Section 611 of the Trade Facilitation and Trade Enforcement Act of 2015  These proposals were equal to the FY2018-enacted amount  The Consolidated Appropriations Act, 2019 ( P L  116-6 ), provided $15 0 million to be derived from the TETF for USTR, for enforcement activities authorized in Section 611 of the Trade Facilitation and Trade Enforcement Act of 2015  This amount is equal to the FY2018-enacted amount  ITEC was established by executive order in 2012 to take a "whole-of-government" approach to monitoring and enforcing U S  trade rights by using expertise from across the federal government  In 2016, the ITEC was succeeded by ICTIME, which Congress established through the Trade Facilitation and Trade Enforcement Act of 2015 ( P L  114-125 )  The executive-established ITEC received its funding through ITA; funding for ICTIME is now appropriated through USTR  ICTIME's purpose is to advance U S  trade policy through strengthened and coordinated enforcement of U S  trade rights  ICTIME investigates potential disputes under the auspices of the World Trade Organization; inspects potential disputes pursuant to bilateral and regional trade agreements to which the United States is a party; and carries out the functions of USTR with respect to the monitoring and enforcement of trade agreements to which the United States is a party  USTR and ITA work closely within the ICTIME to identify issues and develop information in areas of economic importance to U S  industries  The USTR's budget justification did not provide a breakdown for requested funding for ICTIME  The House and Senate committee-reported bills did not include a specific funding amount for ICTIME  The Senate committee report did note that the Senate committee supports ICTIME within the funds provided for USTR  The Consolidated Appropriations Act, 2019 ( P L  116-6 ) and the accompanying conference report also did not provide specific language regarding ICTIME 
Report 2:  FSA staff from all four of our selected regional offices told us that they provisionally certify schools for a variety of reasons, including when a school submits a late compliance audit or when a recent compliance audit indicates that a school could potentially have significant problems  Generally, schools in provisional certification status are subject to additional monitoring by FSA compared to schools that have been fully certified  For example, Education officials said that if they have concerns about a provisionally certified school’s student withdrawal rate, they can add provisional conditions requiring the school to submit monthly enrollment rosters for review  Staff in two FSA regional offices told us that in other cases, if they have concerns about how a school is administering federal student aid or suspected fraud, they can put a school on provisional status and conduct a program review to collect more detailed information on compliance with federal requirements  Education data also show that most schools remain in provisional status the first time they are recertified—62 percent from 2006 to 2017  In contrast, FSA staff fully recertified over three-quarters of schools that applied for recertification a second time during the same time period (see table 2)  For more information on first and second recertification outcomes by school sector, see appendix II  We found that FSA generally relies on compliance audits as the only annual on-site review to determine how schools applying for recertification administer federal student aid  The audits provide direct information collected by independent auditors from school visits and file reviews examining how schools administer federal student aid and comply with program requirements  For example, OIG audit guidance directs auditors to check whether schools are distributing federal student aid to eligible students and accurately calculating student loan amounts  FSA officials and staff from all four of our selected regional offices said that compliance audits are a key source of information they use to assess a school’s administrative capability  Officials from Education’s OIG said that the quality of information in compliance audits varies substantially and depends on the auditor  The OIG has found quality problems in some of the compliance audits it selects—based on auditor and school risk factors—for its annual quality control reviews  Because the OIG selects higher risk audits to review, its reviews are more likely to detect problems, and OIG officials said they cannot make any conclusions about the overall prevalence of quality problems in compliance audits  However, our analysis of OIG quality review data found that of the 739 compliance audits reviewed by the OIG from fiscal years 2006 through 2017, the OIG passed 23 percent (173) and failed 59 percent (436)  An additional 18 percent (130) passed with deficiencies  For example, across the 41 compliance audits it reviewed in fiscal year 2016, the OIG identified 264 quality deficiencies with the auditor’s work, according to our analysis of quality reviews provided by the OIG  The most frequently cited issues in these 41 audits were: reporting (24 audits), such as lack of evidence that the auditor tested whether the school correctly reported student enrollment status; student eligibility (20 audits), such as lack of evidence that the auditor verified student school attendance; and administrative capability (19 audits), such as lack of evidence that the auditor determined whether the accreditor had been notified about a change in school ownership within 10 days  FSA officials also identified quality issues with the compliance audits of some schools  FSA headquarters officials and staff we interviewed in several regional offices said they have seen schools with significant program review findings that had not been identified in annual compliance audits  FSA staff said they have referred some compliance audits to the OIG for quality reviews when they have had questions about the thoroughness of an audit  We also found a couple of examples in our review of school certification documents in which the findings identified in a school’s compliance audit were different from the findings identified by FSA in a program review of the same school covering the same time period  In one case, FSA staff said they probably would have fully recertified the school if they had relied solely on the compliance audit  Instead, they used the program review to determine that the school should be provisionally recertified  Compliance audits and program review findings are based on a sample of student records, and FSA staff said some differences in findings might be explained by differences in the records reviewed  FSA and OIG officials cited several issues that can affect the quality of compliance audits  FSA and OIG officials we interviewed said that some auditors conducting compliance audits have insufficient training in federal student aid, which contributes to audit quality problems  OIG staff also said that even if an auditor meets the general training hour requirements for auditors, the training content may not be relevant for federal student aid audits  In addition, FSA and OIG officials said some schools— particularly smaller schools—tend to hire less experienced auditors in order to save money, often resulting in poor quality audits  FSA officials in most selected regional offices said that additional training on federal student aid for auditors who are new to or unfamiliar with federal student aid could help improve audit quality  FSA and the OIG recently have taken steps to address audit quality and the information available to FSA staff when making certification decisions  These efforts include: Training for auditors: The OIG has taken steps to enhance training offered to auditors of schools’ administration of federal student aid and is exploring opportunities to provide additional training  In December 2017, the OIG and the American Institute of Certified Public Accountants cosponsored training for auditors on the OIG’s 2016 revised guide for audits of for-profit schools, and other topics related to auditing federal student aid  The training included discussion of common audit quality issues and areas of highest risk  According to an OIG official, about 200 auditors attended, and after the event, the American Institute of Certified Public Accountants and the OIG posted a recording of the training to their websites to make it available to additional auditors  In addition, OIG officials said they maintain an email account—listed on the OIG website—through which auditors can ask questions and receive responses  In March 2018, the OIG posted frequently asked questions and answers to the website  Timeliness of OIG quality reviews: Both FSA and OIG officials said that the OIG has recently renewed efforts to issue compliance audit quality reviews more quickly, after several years in which staffing shortages and other issues led to some delayed quality reviews  Guidance to schools on selecting an auditor: OIG officials said that at the 2017 FSA training conference for school financial aid staff, they presented to more than 400 participants about factors schools should consider when hiring an auditor  For example, they suggested that schools verify the licenses of certified public accountants, ask about the types of engagements an auditing firm has conducted, request and check references, check for any actions that may have been taken against a firm, and ask whether the auditor has been subject to a previous review by the OIG or another agency  FSA officials said they expected to invite the OIG to present at future FSA conferences, and OIG officials said they were seeking additional opportunities to share information on auditor selection with schools, including a planned presentation to an association of postsecondary schools  FSA working group: FSA recently established a working group to update its guidance to FSA staff on how to coordinate with the OIG to address compliance audits with quality problems  Among other topics, the working group has consulted with the OIG about how schools are made aware of the OIG’s findings regarding the quality of their audits  FSA officials said that OIG officials have provided input and feedback on FSA’s proposed changes to the guidance  Audit guide revisions: In addition, OIG and FSA staff told us they expected the OIG’s 2016 revisions to the for-profit school audit guide to improve the quality of compliance audits for those schools  They said that because the revised guide clarified some issues that were confusing to auditors in the previous guide issued in 2000, auditors might be better able to implement the guidance  The audit guide revisions include more testing and reporting requirements, clarified procedures, and guidance on issues such as fraud reporting and coordinating financial and compliance audits  The 2016 revisions first applied to audits for fiscal years beginning after June 30, 2016, and FSA began receiving those audits at the end of 2017  In addition, although the OIG’s 2016 revisions only apply to audits of for-profit schools, FSA officials said they planned to establish a working group to consider improvements to audit guidance for public and nonprofit schools  FSA and OIG efforts to address audit quality could help ensure that compliance audits provide accurate and reliable information on school administrative capability for Education’s recertification decisions  We provided a draft of this report to Education for review and comment  Education’s Office of Inspector General provided technical comments, which we considered and incorporated as appropriate  Education did not provide other comments on the report  We are sending copies of this report to the appropriate congressional committees; the Secretary of Education; and other interested parties  In addition, the report is available at no charge on the GAO website at http://www gao gov  If you or your staff have any questions about this report, please contact me at (617) 788-0534 or emreyarrasm@gao gov  Contact points for our Offices of Congressional Relations and Public Affairs may be found on the last page of this report  GAO staff who made key contributions to this report are listed in appendix III  In addition to the contact named above, Michelle St  Pierre (Assistant Director), Kristy Kennedy (Analyst-in-Charge), Edward Bodine, Marissa Jones, and Mark Ward made significant contributions  Also contributing to this report were Susan Aschoff, Deborah Bland, Nagla’a El-Hodiri, Monika Gomez, Sheila R  McCoy, Jessica Orr, Mimi Nguyen, John Mingus, Rhiannon Patterson, Monica Savoy, Benjamin Sinoff, and Rosemary Torres Lerma 

ground_truth: The Consolidated Appropriations Act, 2019 (P.L. 116-6), was signed into law on February 15, 2019. The act included a total of $647.0 million in funding for three trade-related agencies under the Commerce, Justice, Science and Related Agencies (CJS) account—the International Trade Administration (ITA), the U.S. International Trade Commission (USITC), and the office of the United States Trade Representative (USTR). This represents a 0.2% decrease from FY2018 appropriations. For FY2019, the Consolidated Appropriations Act, 2019, included $484.0 million in direct appropriations for ITA (a 0.4% increase from the FY2018 appropriation), $95.0 million in funding for USITC (a 1.4% increase), and a total of $68.0 million for USTR (a 0.2% decrease). The Administration's Request On February 12, 2018, the Trump Administration submitted its FY2019 budget request to Congress. The FY2019 proposal included a total of $590.8 million for the three CJS trade-related agencies, an 8.9% decrease from FY2018 total appropriated amounts for these agencies. The Administration requested reducing funding for all three trade-related agencies. For FY2019, the request included $440.1 million in direct funding for ITA (an 8.7% decrease from the FY2018 appropriation), $87.6 million for USITC (a 6.5% decrease), and $63.0 million for USTR (a 13.2% decrease). Congressional Actions In the spring of 2018, the House and Senate reported FY2019 CJS appropriations bills, which included proposed funding for ITA, USITC, and USTR. The reported bills did not adopt many of the Administration's budget reductions, and instead proposed funding levels that were more similar to the FY2018-enacted amounts. The House Committee on Appropriations reported H.R. 5952 on May 17, 2018. The House proposal recommended a total of $647.6 million for the three CJS trade-related agencies. This proposal was $56.8 million more (9.6%) than the Administration's request, and $0.7 million less (-0.1%) than the FY2018-enacted legislation. The House committee proposed $480.0 million in direct funding for ITA, $95.0 million for USTIC, and a total of $72.6 million for USTR, comprised of $57.6 million for salaries and expenses and an additional $15.0 million from the Trade Enforcement Trust Fund for trade enforcement activities as authorized by the Trade Facilitation and Trade Enforcement Act of 2015 (P.L. 114-125). The Senate Committee on Appropriations reported S. 3072 on June 14, 2018. The Senate committee-reported proposal recommended a total of $655.6 million for the three CJS trade-related agencies. This is $64.8 million (11.0%) more than the Administration's request and $7.3 million (1.1%) more than the FY2018-enacted appropriations. The Senate committee proposed $488.0 million in direct funding for ITA, $95 million for USITC, and a total of $72.6 million for USTR, comprised of $57.6 million for salaries and expenses and an additional $15.0 million from the Trade Enforcement Trust Fund for trade enforcement activities. After three continuing resolutions and a three-week lapse in funding, Congress passed the Consolidated Appropriations Act. 2019 (P.L. 116-6), which was signed into law on February 15, 2019. The act included a total of $647.0 million in funding for the three trade-related agencies, which represented a 0.2% decrease from FY2018 funding levels.