An audit was conducted to determine whether the U.S. Department of Education had implemented adequate management controls to administer the Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP) in accordance with legislative, regulatory, and internal administrative requirements. The focus was on the fiscal year 2000 grant competition from the development of the application Technical Review Plan to the awarding of grant funds. The audit found that the GEAR UP office did not establish and follow management controls necessary to assure that it administered the program in accordance with requirements. It was found that the Department did not assure that GEAR UP officials informed Grants Policy and Oversight Service when changes were made with GEAR UP program staff and officials holding warrant authority. Nor did the Department assure that GEAR UP staff followed the Department's Technical Review Plan or established a monitoring plan as prescribed. Steps had not been taken to ensure that GEAR UP staff completed steps to determine eligibility prior to awarding grant funds and that completed technical review forms were adequately reviewed. Recommendations were made to require GEAR UP officials to change procedures to comply with legislative, regulatory, and their own internal requirements. An appendix contains the initial responses of the Department of Education to these findings. (SLD)