Correspondence issued by the General Accounting Office with an abstract that begins "We reviewed the audit reports covering the financial statements of the National Conference of State Societies, Washington, DC, for fiscal years 2001 and 2000. GAO's review disclosed no reportable instances of noncompliance with the financial reporting requirements of the law. The audit reports included the auditors' opinions that the financial statements of the corporation were presented fairly on the cash basis of accounting."

Testimony issued by the General Accounting Office with an abstract that begins "Attacks on computer systems--in government and the private sector--are increasing at an alarming rate, placing both federal and private-sector operations and assets at considerable risk. By exploiting software vulnerabilities, hackers can cause significant damage. While patches, or software fixes, for these vulnerabilities are often well publicized and available, they are frequently not quickly or correctly applied. The federal government recently awarded a contract for a government-wide patch notification service designed to provide agencies with information to support effective patching. Forty-one agencies now subscribe to this service. At the request of the Chairman of the Subcommittee on Technology, Information Policy, Intergovernmental Relations, and the Census, GAO reviewed (1) two recent software vulnerabilities and related responses; (2) effective patch management practices, related federal efforts, and other available tools; and (3) additional steps that can be taken to better protect sensitive information systems from software vulnerabilities."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit reports covering the financial statements of the National Federation of Music Clubs, for fiscal year 2002. GAO found no reportable instances of noncompliance. The audit reports included the auditors' opinion that the financial statements of the corporation were presented fairly in accordance with generally accepted accounting principles."

Testimony issued by the General Accounting Office with an abstract that begins "In 1986, the United States entered into a Compact of Free Association with the Pacific Island nations of the Federated States of Micronesia, or FSM, and the Republic of the Marshall Islands, or RMI. The Compact provided about $2.1 billion in U.S. funds, supplied by the Department of the Interior, over 17 years (1987-2003) to the FSM and the RMI. These funds were intended to advance economic development. In a past report, GAO found that this assistance did little to advance economic development in either country, and accountability over funding was limited. The Compact also established U.S. defense rights and obligations in the region and allowed for migration from both countries to the United States. The three parties recently renegotiated expiring economic assistance provisions of the Compact in order to provide an additional 20 years of assistance (2004-2023). In addition, the negotiations addressed defense and immigration issues. The House International Relations and Resources Committees requested that GAO report on Compact negotiations. This testimony discusses negotiated changes to the levels and structure of future assistance, including the potential cost to the U.S. government. Further, it reviews accountability, defense, and …

Correspondence issued by the General Accounting Office with an abstract that begins "Wildland fires burned over 8 million acres during the 2000 wildfire season, making it one of the worst in the past 50 years. As a result, a National Fire Plan was implemented beginning in 2001 to better prevent, prepare for, respond to, and repair damage caused by wildland fires. In fiscal years 2001 through 2003, Congress provided $4.9 billion to the U.S. Department of Agriculture's (USDA) Forest Service to implement the National Fire Plan on land that it manages. Of this amount, Congress earmarked $212 million to fund the rehabilitation of land burned by wildland fires. In general, rehabilitation covers long-term efforts to improve lands unlikely to recover naturally from wildland fire damage. In some cases, rehabilitation may include removing timber from burnt land to, among other things, reduce hazardous fuels. Questions have been raised, however, about whether it is appropriate to use rehabilitation funds for removing such timber, which can be sold. Trees that are removed from National Forest System land can be either green and healthy or dead or dying as a result of disease or wildland fire. Depending on their value, the trees may be …

Correspondence issued by the General Accounting Office with an abstract that begins "We reviewed the audit reports covering the financial statements of the National Ski Patrol System, Incorporated, for fiscal years 2002 and 2001. GAO's review disclosed no reportable instances of noncompliance with the financial reporting requirements of the law. The audit reports included the auditors' opinions that the financial statements of the corporation were presented fairly in accordance with generally accepted accounting principles."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit reports covering the financial statements of the Navy Club of the United States of America for fiscal years 2002 and 2001. GAO found no reportable instances of noncompliance. The audit reports included the auditors' opinions that the financial statements of the corporation were presented fairly in accordance with generally accepted accounting principles."

Testimony issued by the General Accounting Office with an abstract that begins "In the mid-1990s, John F. Kennedy Center for the Performing Arts (Kennedy Center) officials recognized a need for additional parking and better site access. As a precursor to a planned project to construct an 8-acre plaza and two additional buildings at the site, the Kennedy Center is currently in the process of constructing a garage expansion and site improvement project. Because of congressional concerns over project delays and costs as well as challenges the Kennedy Center faces as it pursues this major construction effort, GAO was requested to examine (1) the garage expansion and site improvement project's current costs, time frames, and scope compared to estimates provided to congressional stakeholders in 1997 and 1998 and (2) challenges the Kennedy Center faces in managing large construction projects. GAO issued its findings in a report entitled Kennedy Center: Improvements Needed to Strengthen the Management and Oversight of the Construction Process, GAO-03-823 (Sept. 5, 2003). This testimony is based on that report."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit reports covering the financial statements of the National Fallen Firefighters Foundation for fiscal years 2002 and 2001. GAO found no reportable instances of noncompliance. The audit reports included the auditors' opinions that the financial statements of the corporation were presented fairly with generally accepted accounting standards."

Correspondence issued by the General Accounting Office with an abstract that begins "From 1990 through 2001, the Department of Defense delivered over $138 billion in defense articles and services to foreign countries through its foreign military sales programs that included spare parts. Some sales occur under blanket order cases, which are requisitions for a specific dollar value and generally cover classes of parts that a country may need rather than a specific item within a class. The management of foreign military sales is especially critical given the need to prevent certain foreign countries from receiving parts that, if released, could be used against U.S. interests. This report stems from audit work performed in connection with our report, Foreign Military Sales: Improved Air Force Controls Could Prevent Unauthorized Shipments of Classified and Controlled Spare Parts to Foreign Countries. In that report, we address issues relating to classified spare parts that are restricted for national security reasons and controlled spare parts that are not classified but contain military technology or applications or are controlled cryptographic parts. During our work for that report, we observed a situation that brought into question Air Force internal controls to prevent unclassified or uncontrolled spare parts that …

Correspondence issued by the General Accounting Office with an abstract that begins "In June 2002, the National Science Foundation (NSF) awarded a 3-year, $14.8 million contract for a business analysis plan to support three key management areas at the foundation: its business processes, human capital, and information technology. The contract is to be completed by September 30, 2005, and is to result in seven deliverables, including a project plan to guide the contractor's work. The Chairman, Senate Committee on Appropriations, Subcommittee on VA, HUD, and Independent Agencies, asked us to obtain information on (1) the status of contract funds budgeted to the key management areas and contract deliverables, and overall plans for the contract; (2) the extent to which the contract will address management issues previously reported by audit and oversight bodies; and (3) NSF's management of the contract and plans for integrating any recommendations made by the contractor."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit reports covering the financial statements of the Italian American War Veterans of the United States for fiscal years 2002, 2001 and 2000. GAO found no reportable instances of noncompliance with the financial reporting requirements. The audit report included the auditors' opinions that the financial statements of the corporation were presented fairly on the cash basis of accounting."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit reports covering the financial statements of the Pearl Harbor Survivors Association, for fiscal year 2002. GAO found no reportable instances of noncompliance. The audit reports included the auditors' opinion that, with one exception, the financial statements of the corporation were presented fairly in accordance with generally accepted accounting principles."

Testimony issued by the General Accounting Office with an abstract that begins "We are pleased to be here today as Congress examines Medicare's financial health and consider the budgetary and economic challenges presented by an aging society. The Comptroller General has been particularly attentive to the sustainability challenges faced by the nation's two largest entitlement programs--Medicare and Social Security--for more than a decade since he served as a public trustee for these programs in the early 1990s. The recent publication of the 2003 Trustees' annual report reminds us, once again, that the status quo is not an option for Medicare. If the program stays on its present course, in 10 years Hospital Insurance (HI) Trust Fund outlays will begin to exceed tax receipts, and by 2026 the HI trust fund will be exhausted. It is important to note that trust fund insolvency does not mean the program will cease to exist; program tax revenues will continue to cover a portion of projected expenditures.1 However, Medicare is only part of the broader health care financing problem that confronts both public programs and private payers. The unrelenting growth in health care spending is producing a health care sector that continues to claim …

Testimony issued by the General Accounting Office with an abstract that begins "After the September 11, 2001, terrorist attacks, emergency preparedness at nuclear power plants has become of heightened concern. Currently, 104 commercial nuclear power plants operate at 64 sites in 32 states and provide about 20 percent of the nation's electricity. In July 2001, GAO reported on emergency preparedness at the Indian Point 2 nuclear power plant in New York State. This testimony discusses GAO's findings and recommendations in that report and the progress the plant, the Nuclear Regulatory Commission (NRC), and the Federal Emergency Management Agency (FEMA) have made in addressing these problems. GAO also provides its thoughts on the findings of a soon-to-be-issued report (the Witt report) on emergency preparedness at Indian Point and the Millstone nuclear power plant in Connecticut, and the implications of that report for plants nationwide. Since 2001, the Entergy Corporation has assumed ownership of the Indian Point 2 plant from the Consolidated Edison Company of New York (ConEd)."

Testimony issued by the General Accounting Office with an abstract that begins "Improvement and innovation based on highway research have long been important to the highway system. The Federal Highway Administration (FHWA) is the primary federal agency involved in highway research. Throughout the past decade, FHWA received hundreds of millions of dollars for its surface transportation research program, including nearly half of the Department of Transportation's approximate $1 billion budget for research in fiscal year 2002. Given the expectations of highway research and the level of resources dedicated to it, it is important to know that FHWA is conducting high quality research that is relevant and useful. In May 2002, GAO issued a report on these issues and made recommendations to FHWA, which the agency agreed with, aimed at improving its processes for setting research agendas and evaluating its research efforts. GAO was asked to testify on (1) best practices for developing research agendas and evaluating research outcomes for federal research programs; (2) how FHWA's processes for developing research agendas align with these best practices; and (3) how FHWA's processes for evaluating research outcomes align with these best practices."

Testimony issued by the General Accounting Office with an abstract that begins "Department of Homeland Security's (DHS) Immigration Interior Enforcement Strategy's implementation is now the responsibility of the Bureau of Immigration and Customs Enforcement (BICE). This strategy was originally created by the Immigration and Naturalization Service (INS). In the 1990s, INS developed a strategy to control illegal immigration across the U.S. border and a strategy to address enforcement priorities within the country's interior. In 1994, INS's Border Patrol issued a strategy to deter illegal entry. The strategy called for "prevention through deterrence"; that is, to raise the risk of being apprehended for illegal aliens to a point where they would consider it futile to try to enter. The plan called for targeting resources in a phased approach, starting first with the areas of greatest illegal activity. In 1999, the INS issued its interior enforcement strategy designed to deter illegal immigration, prevent immigration-related crimes, and remove those illegally in the United States. Historically, Congress and INS have devoted over five times more resources in terms of staff and budget on border enforcement than on interior enforcement."

Testimony issued by the General Accounting Office with an abstract that begins "In January, we issued our Performance and Accountability Series on management challenges and program risks at major agencies, including the U.S. Department of Agriculture (USDA). The report for USDA focused on a number of major management challenges, including enhancing financial management, and continued the high risk designation for Forest Service financial management. For many years, USDA struggled to improve its financial management activities, but inadequate accounting systems and related procedures and controls hampered its ability to get a clean opinion on its financial statements. After eight consecutive disclaimers of opinion, USDA's Office of Inspector General issued an unqualified opinion on USDA's fiscal year 2002 financial statements and reported that significant progress had been made in improving overall financial management. For each of USDA's agencies that prepared separate financial statements for fiscal year 2002, the audit opinions were also positive. Specifically, unqualified audit opinions were issued on the financial statements of the Forest Service, Federal Crop Insurance Corporation/Risk Management Agency, Commodity Credit Corporation, the Rural Development mission area, and the Rural Telephone Bank. While we consider these clean opinions a positive step, some of these could not have been …

Testimony issued by the General Accounting Office with an abstract that begins "Much has changed since the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR-21) reauthorized the Federal Aviation Administration's (FAA) programs 3 years ago. At that time, air traffic was increasing, and concerns about congestion and flight delays were paramount. Since then, the downturn in the nation's economy, the terrorist attacks of September 11, 2001, and, most recently, the war in Iraq have taken a heavy toll on aviation. Analysts nonetheless expect the demand for air travel to rebound, and the nation's aviation system must be ready to accommodate the projected growth safely and securely. The current reauthorization of FAA's programs provides an opportunity for the Congress and the administration to focus on challenges in increasing aviation capacity, efficiency, and safety and in controlling aviation program costs."

Testimony issued by the General Accounting Office with an abstract that begins "Based on its budget, the Department of Homeland Security (DHS) is the largest entity in the federal government that is not subject to the Chief Financial Officers (CFO) Act of 1990. The department, with an estimated $39 billion in assets, an almost $40 billion fiscal year 2004 budget request, and more than 170,000 employees, does not have a presidentially appointed CFO subject to Senate confirmation and is not required to comply with the Federal Financial Management Improvement Act (FFMIA) of 1996. In addition, we designated implementation and transformation of DHS as high risk based on three factors: (1) the implementation and transformation of DHS is an enormous undertaking that will take time to achieve in an effective and efficient manner, (2) components to be merged into DHS already face a wide array of existing challenges, and (3) failure to effectively carry out its mission would expose the nation to potentially very serious consequences. In light of these conditions, Congress asked GAO to testify on the financial management challenges facing DHS, steps for establishing sound financial management and business processes at DHS, and GAO's comments on H.R. 2886, The …

Testimony issued by the General Accounting Office with an abstract that begins "DOE is the largest civilian-contracting agency in the federal government, and relies primarily on contractors to operate its sites and carry out its diverse missions. For fiscal year 2003, DOE will spend about 90 percent of its total annual budget, or $19.8 billion, on contracts, including $9.4 billion to operate 16 of its research laboratories (called federally funded research and development centers). Since 1990, GAO has identified DOE's contract management as high-risk for fraud, waste, abuse, and mismanagement. In 1994, DOE began reforming its contracting practices to, among other things, improve contractor performance and accountability. As part of that effort, DOE has at times used competition in awarding contracts to manage and operate its research laboratories. In September 2002, GAO reported on the status of contract reform efforts in DOE. (Contract Reform: DOE Has Made Progress, but Actions Needed to Ensure Initiatives Have Improved Results) (Sep. 2002, GAO-02-798) This testimony discusses some of the findings in that report. GAO was asked to testify on DOE's rationale for deciding whether to compete a laboratory research contract, the extent to which DOE has competed these contracts, and the role of …

Testimony issued by the General Accounting Office with an abstract that begins "In 1936, the Social Security Administration (SSA) established the Social Security Number (SSN) to track worker's earnings for social security benefit purposes. However, the SSN is also used for a myriad of non-Social Security purposes. Today, the SSN is used, in part, as a verification tool for services such as child support collection, law enforcement enhancements, and issuing credit to individuals. Although these uses of SSNs are beneficial to the public, SSNs are also a key piece of information in creating false identities. Moreover, the aggregation of personal information, such as SSNs, in large corporate databases, as well as the public display of SSNs in various public records, may provide criminals the opportunity to commit identity crimes. SSA, the originator of the SSN, is responsible for ensuring SSN integrity and verifying the authenticity of identification documents used to obtain SSNs. Although Congress has passed a number of laws to protect an individual's privacy, the continued use and reliance on SSNs by private and public sector entities and the potential for misuse underscores the importance of identifying areas that can be strengthened. Accordingly, this testimony focuses on describing (1) …

Testimony issued by the General Accounting Office with an abstract that begins "In its 2003 performance and accountability report on the Department of Education, GAO identified challenges in, among other areas, student financial aid programs and financial management. The information GAO presents in this testimony is intended to assist Congress in assessing Education's progress in addressing and overcoming these challenges. GAO is not making new recommendations in this testimony, but past reports have made specific recommendations aimed at addressing some of these major management challenges."

Testimony issued by the General Accounting Office with an abstract that begins "Geographic information systems (GIS) manipulate, analyze, and graphically present an array of information associated with geographic locations, have been invaluable to all levels of government. Their usefulness in disaster response was recently demonstrated during the Space Shuttle Columbia recovery effort. GIS provided precise maps and search grids to guide crews to the debris that was strewn across 41 counties in Texas and Louisiana. The federal government has long been attempting to develop an integrated nationwide GIS network. The information available through such a network could significantly enhance decision--making in myriad public--service areas, including emergency response, national security, law enforcement, health care, and the environment. Among GAO's objectives were to describe the federal government's efforts to coordinate GIS activities, the long-standing challenges of adopting and implementing federal GIS standards, and the role of Geospatial One-Stop."