The review was designed to determine the adequacy of the LEAA policies and procedures used to establish, control, account for, bill, and collect LEEP grants and loans. Special attention was given to the major computer program supporting the accounting system and to the LEEP accounting system. Legislation establishing LEAA and authorizing LEEP was reviewed, LEAA regulations were analyzed, and accounting procedures were investigated. LEAA officials responsible for the LEEP accounting system and those responsible for LEEP program management were interviewed. Accounting records and student files were sampled; from this sampling researchers drew conclusions about the overall accuracy of individual records, billings, and collections, and the schools' adherence to LEEP regulations. Reviewers concluded that schools were not always effectively administering the program nor were they consistently following the regulations established by the LEEP guidelines. As a result, ineligible students received grants and loans, and control over fund disbursements was lost. The review indicates that schools have problems properly administering LEEP and that corrective action is needed. Additional management is needed to correct problems and to prevent recurrence of them. Schools receiving significant funds should be checked to determine if those schools are making loans to ineligible students. LEEP program coordinators should regularly visit participating schools to ensure proper and uniform implementation of regulations. Recommendations for monitoring the program are made. Charts summarizing data are included. Appendixes contain relevant correspondence.