Correspondence issued by the Government Accountability Office with an abstract that begins "In connection with fulfilling our requirement to audit the financial statements of the U.S. government, we audited and reported on the Schedules of Federal Debt Managed by the Bureau of the Public Debt (BPD) for the fiscal years ended September 30, 2010 and 2009. As part of these audits, we performed a review of information systems controls over key BPD financial systems. As we reported in connection with our audit of the Schedules of Federal Debt for the fiscal years ended September 30, 2010 and 2009, we concluded that BPD maintained, in all material respects, effective internal control over financial reporting relevant to the Schedule of Federal Debt as of September 30, 2010, that provided reasonable assurance that misstatements, losses, or noncompliance material in relation to the Schedule of Federal Debt would be prevented, or detected and corrected on a timely basis. However, we identified information systems deficiencies affecting internal control over financial reporting, which, while we do not consider them to be collectively either a material weakness or significant deficiency, nevertheless warrant BPD management's attention and action. This report presents the control deficiencies we identified during our …

Correspondence issued by the Government Accountability Office with an abstract that begins "The Air Force expects to invest over $230 billion to operate, maintain, modernize, and recapitalize its tactical air forces during fiscal years 2011 through 2015. This makes up nearly 70 percent of the Department of Defense's (DOD) total expected tactical aircraft investment over that time. Despite this large investment, the Air Force continues to project that its inventory of fighter and attack aircraft will drop below required levels and that those shortfalls will persist through at least 2030. However, the timing and magnitude of projected shortfalls continue to fluctuate. In April 2008, senior Air Force leaders testified before Congress that they expected the Air Force fighter shortfall to peak at about 800 aircraft in the mid-2020s. Since that time the Air Force has reduced its overall requirement and adjusted its assumptions about Joint Strike Fighter (JSF) procurement and the viability of legacy aircraft. As a result, the Air Force now expects its shortfall to peak at about 200 aircraft. Still, this poses a challenge as the Air Force must effectively balance its investments between the JSF program and efforts to keep legacy aircraft viable for longer periods than …

A publication issued by the Government Accountability Office with an abstract that begins "The Department of Defense (DOD) relies on a multisector workforce of military personnel, other federal employees, and private contractors to perform needed services. The contractor workforce is substantial: DOD is the federal government's largest purchaser of contractor-provided services, such as aircraft maintenance or base operating support. Determining whether to obtain services with in-house resources or through private sector contractors is an important economic and strategic decision essential to DOD's effective and efficient use of taxpayer dollars. Conducting competitions between public and private sources to identify the most cost-effective provider of services is one tool DOD can use to achieve such efficiencies. In the National Defense Authorization Act for Fiscal Year 2010 (NDAA 2010), Congress imposed a temporary moratorium on new competitions involving functions currently performed by DOD civilian employees until, among other things, DOD reviewed and reported to Congress on various aspects of its public-private competition policies. The department submitted a report to Congress on its review on June 28, 2011. Should the moratorium be lifted, Congress also limited the duration of any new competitions to 24 months, with a possible extension to 33 months if DOD …

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony discusses the fraud prevention controls within the Service-Disabled Veteran-Owned Small Business (SDVOSB) program at the Department of Veterans Affairs (VA). Today's testimony summarizes our report, released today, on the design of VA's fraud prevention controls within the SDVOSB verification program, including recent improvements in controls. The SDVOSB program is intended to provide federal set-aside and sole-source contracts to small businesses owned and controlled by one or more service-disabled veterans. About $10.8 billion in contracts were awarded in fiscal year 2010 to firms that self-certified as SDVOSBs in the Central Contractor Registration (CCR), according to the Small Business Administration (SBA). VA's SDVOSB contracts accounted for $3.2 billion, or about 30 percent of the $10.8 billion in governmentwide SDVOSB contracts during fiscal year 2010. As of October 2011, VA's VetBiz Vendor Information Pages database shows that the agency has verified the eligibility of more than 5,000 SDVOSB firms. In addition, more than 15,000 firms also self-certified their SDVOSB eligibility in CCR. In audits of the SDVOSB program conducted in 2009 and 2010, we identified weaknesses in fraud prevention controls that allowed ineligible firms to receive about $100 million …

Testimony issued by the Government Accountability Office with an abstract that begins "The Compact of Free Association between the United States and the Republic of Palau, which entered into force in 1994, provided for several types of assistance aimed at promoting Palau's self-sufficiency and economic advancement. Included were 15 years of direct assistance to the Palau government; contributions to a trust fund meant to provide Palau $15 million each year in fiscal years 2010 through 2044; construction of a road system, known as the Compact Road; and federal services such as postal, weather, and aviation. U.S. agencies also provided discretionary federal programs related to health, education, and infrastructure. In 2008, GAO projected that total assistance in fiscal years 1994 though 2009 would exceed $852 million. In September 2010, the United States and Palau signed an agreement (the Agreement) that would, among other things, provide for additional assistance to Palau beginning in fiscal year 2011 and modify its trust fund. A bill, now pending, was introduced in the Senate on February 14, 2011, to approve the Agreement and appropriate funds to implement it. In this testimony, GAO updates a June 2011 testimony on (1) the Agreement's provisions for economic assistance to …

Correspondence issued by the Government Accountability Office with an abstract that begins "Federal agencies rely on a multisector workforce of federal employees and contractor personnel to perform services needed to carry out their missions. Determining whether to obtain services through insourcing with current or new federal employees, outsourcing with private-sector contractors, or sourcing with a combination of the two is an important economic and strategic decision essential to the federal government's effective and efficient use of taxpayer dollars. Since fiscal year 2006, civilian agencies have obligated over $100 billion annually to obtain a range of services from contractors. Almost 80 percent of contract obligations made by civilian agencies in fiscal year 2010 were for service contracts. Since the mid-1950s, the executive branch has encouraged federal agencies to obtain commercially available services from the private sector when outsourcing is cost effective. In 2009, however, the President issued a memorandum on government contracting that expressed concern about whether agencies have become overly reliant on contractors and have appropriately outsourced services. In particular, the President noted that the line between inherently governmental functions--those that must be performed by federal employees--and commercial activities that may be contracted for has been blurred. In the memorandum, …

Correspondence issued by the Government Accountability Office with an abstract that begins ""

Testimony issued by the Government Accountability Office with an abstract that begins "The Centers for Medicare and Medicaid Services (CMS) is responsible for administering and safeguarding its programs from loss of funds. As GAO reported in June 2011, CMS utilizes automated systems and tools to help improve the detection of improper payments for fraudulent, wasteful, and abusive claims. To integrate claims information and improve its ability to detect fraud, waste, and abuse in these programs, CMS initiated two information technology system programs: the Integrated Data Repository (IDR) and One Program Integrity (One PI). GAO was asked to testify on its earlier report that examined CMS's efforts to protect the integrity of the Medicare and Medicaid programs through the use of information technology. In that prior study, GAO assessed the extent to which IDR and One PI have been developed and implemented, and CMS's progress toward achieving its goals and objectives for using these systems to detect fraud, waste, and abuse."

Correspondence issued by the Government Accountability Office with an abstract that begins "The Environmental Protection Agency (EPA) estimates that one in four Americans lives within 3 miles of a contaminated site, many of which pose serious risks to human health and the environment. The Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) provided the federal government with authority to respond to releases or threatened releases of hazardous substances and created a trust fund to provide for certain cleanup activities. Under CERCLA, EPA established the Superfund program to address the threats that contaminated sites pose. Although EPA has paid for the cleanup of many of these sites through the Superfund program, funding for these cleanups has diminished in recent years. In 2010, we reported that EPA's estimated costs to clean up existing contaminated sites exceed the Superfund program's current funding levels and that some sites have not received sufficient funding for cleanup to proceed in the most cost-efficient manner. Additionally, in July 2009, we reported that EPA does not collect sufficient information on the cost of cleanup activities at Superfund sites and recommended, among other things, that EPA assess and improve the data it collects on the status and …

Correspondence issued by the Government Accountability Office with an abstract that begins "As requested, this correspondence discusses our findings on whether the net excise tax revenue distributed to the Highway Trust Fund (HTF) for the fiscal year ended September 30, 2011, is supported by the underlying records. The Department of Transportation's Inspector General is responsible for the adequacy of these agreed-upon procedures to meet your objectives, and we make no representation in that respect. The procedures we agreed to perform were related to (1) transactions that represent the underlying basis of amounts distributed from the general fund to the HTF during fiscal year 2011, (2) the Internal Revenue Service's (IRS) quarterly HTF excise tax receipt certifications prepared during fiscal year 2011, (3) the U.S. Department of the Treasury's Financial Management Service adjustments to HTF excise tax distributions during fiscal year 2011, (4) the U.S. Department of the Treasury's Office of Tax Analysis's (OTA) estimates of excise tax amounts to be distributed to the HTF for the fourth quarter of fiscal year 2011, (5) adjustments to the HTF for tax on kerosene used in aviation during fiscal year 2011, and (6) the amount of net excise taxes distributed to the HTF …

A publication issued by the Government Accountability Office with an abstract that begins "Within the Department of Homeland Security (DHS), the Transportation Security Administration (TSA) is responsible for developing and acquiring new technologies to address homeland security needs. TSA's acquisition programs represent billions of dollars in life-cycle costs and support a wide range of aviation security missions and investments including technologies used to screen passengers, checked baggage, and air cargo, among others. GAO's testimony addresses three key challenges identified in past work: (1) developing technology program requirements, (2) overseeing and conducting testing of new technologies, and (3) incorporating information on costs and benefits in making technology acquisition decisions. This statement also addresses recent DHS efforts to strengthen its investment and acquisition processes. This statement is based on reports and testimonies GAO issued from October 2009 through September 2011 related to TSA's efforts to manage, test, and deploy various technology programs."

A publication issued by the Government Accountability Office with an abstract that begins "As one of the largest and most complex organizations in the world, the Department of Defense (DOD) faces many challenges in resolving its long-standing financial and related business operations and system problems. DOD is in the process of implementing modern multifunction enterprise resource planning (ERP) systems to replace many of its outdated legacy systems. The ERPs are intended to perform business-related tasks such as general ledger accounting and supply chain management. Modernizing DOD's business systems is a critical part of transforming the department's business operations, addressing high-risk areas, and providing more-accurate and reliable financial information to Congress on DOD's operations. The Panel requested that GAO provide its perspective on DOD's ERP implementation efforts and the impact implementation problems could have on DOD's efforts to improve financial management and be audit ready by fiscal year 2017. This statement is based on GAO's prior work, reports issued by the Department of Defense Inspector General (DOD IG), and GAO's ongoing oversight of selected DOD ERP efforts. Over the years, GAO has made numerous recommendations to improve the department's financial management operations."

Testimony issued by the Government Accountability Office with an abstract that begins "The Dodd-Frank Wall Street Reform and Consumer Protection Act directed GAO to conduct a one-time audit of the emergency loan programs and other assistance authorized by the Board of Governors of the Federal Reserve System (Federal Reserve Board) during the recent financial crisis. This testimony summarizes the results of GAO's July 2011 report (GAO-11-696) examining the emergency actions taken by the Federal Reserve Board from December 1, 2007, through July 21, 2010. For these actions, where relevant, this statement addresses (1) accounting and financial reporting internal controls; (2) the use, selection, and payment of vendors; (3) management of conflicts of interest; (4) policies in place to secure loan repayment; and (5) the treatment of program participants. To meet these objectives, GAO reviewed program documentation, analyzed program data, and interviewed officials from the Federal Reserve Board and Reserve Banks (Federal Reserve System)."

A publication issued by the Government Accountability Office with an abstract that begins "Cloud computing, an emerging form of computing where users have access to scalable, on-demand capabilities that are provided through Internet-based technologies, has the potential to provide information technology services more quickly and at a lower cost, but also to introduce information security risks. Accordingly, GAO was asked to testify on the security implications of cloud computing. This testimony describes (1) the information security implications of using cloud computing services in the federal government; (2) GAO's previous reporting on federal efforts and guidance to address cloud computing information security; and (3) GAO recommendations and subsequent actions taken by federal agencies to address federal cloud computing security issues. In preparing this statement, GAO summarized its May 2010 report on cloud computing security and assessed agency actions to implement its recommendations."

Correspondence issued by the Government Accountability Office with an abstract that begins "Iran's economy and government are reliant on revenues from its oil and gas industry. According to the 2011 Central Intelligence Agency World Factbook, oil accounts for approximately 80 percent of Iran's exports, and, according to the International Monetary Fund, Iran's 2009 oil revenues were about 66 percent of the Government of Iran's revenues. According to the Department of Energy (DOE), Iran ranks among the top three holders of proven oil and natural gas reserves in the world, and is one of the largest exporters of crude oil in the world. While Iran continues to produce significant amounts of crude oil, its peak production occurred in 1978 and has not been matched since then because of a high rate of natural decline in mature oil fields, limited investment, and sanctions. IHS Global Insight found that the oil sector will require approximately $25 billion in annual investments to maintain existing production and considerably more to develop and enhance recovery techniques that would lift Iran's daily output to 5.8 million barrels by 2015. While Department of State (State) officials state that sanctions have an impact on Iran, the Iranian government continues …

Correspondence issued by the Government Accountability Office with an abstract that begins "The Department of Defense (DOD) positions equipment and supplies at strategic locations around the world to enable it to field combat-ready forces in days rather than the weeks it would take if equipment had to be moved from the United States to the location of a military conflict. However, sustained operations have taken a toll on the condition and readiness of military equipment. Over the last few years, we have identified a number of ongoing and long-term challenges regarding DOD's prepositioned stocks. The services have estimated the cost and time frame to replenish their stocks in DOD's annual report to Congress, and they review their prepositioning programs to address new requirements to meet future needs. DOD has reported to Congress that the services are committed to reconstituting prepositioned materiel but must balance these efforts with the department's other priorities, such as restructuring capabilities within its prepositioned stocks and changes in its overseas military presence. In 2011, we reported that DOD has limited departmentwide guidance that would help ensure that its prepositioning programs accurately reflect national military objectives and recommended that DOD develop overarching guidance related to prepositioned stocks.2 …

A publication issued by the Government Accountability Office with an abstract that begins "Over 3,600 people in this country died in 2009 as a result of crashes involving large commercial trucks and buses. Until recently the Federal Motor Carrier Safety Administration (FMCSA) and its state partners tracked the safety of motor carriers--companies that own these vehicles--by conducting resource-intensive compliance reviews of a small percentage of carriers. In 2004, FMCSA began its Compliance, Safety, and Accountability (CSA) program. CSA is intended to identify and evaluate carriers and drivers posing high safety risks. FMCSA has focused on three key CSA oversight activities to evaluate carriers: a new Safety Measurement System (SMS) using more roadside inspection and other data to identify at-risk carriers; a wider range of "interventions" to reach more at-risk carriers; and using SMS data to suspend unfit carriers. FMCSA expected to fully implement CSA by late 2010. FMCSA also plans to separately use data to rate drivers' fitness. In this report, GAO assessed: (1) the status of the CSA rollout and issues that could affect it and (2) CSA's potential to improve safety. GAO reviewed CSA plans and data, visited eight states, and interviewed FMCSA, state, and industry officials."

Testimony issued by the Government Accountability Office with an abstract that begins "The Departments of Defense (DOD) and State (State) and the United States Agency for International Development (USAID) have collectively obligated billions of dollars for contracts and assistance to support U.S. efforts in Afghanistan. The work of GAO and others has documented shortcomings in DOD's contract management and oversight, and its training of the non-acquisition workforce. Addressing these challenges can help DOD meet warfighter needs in a timely and costconscious manner; mitigate the risks of fraud, waste, and abuse; and minimize the operational risks associated with contractors. This testimony addresses the extent to which (1) DOD's Contracting Officer's Representatives (COR) are prepared for their roles and responsibilities and provide adequate contract oversight in Afghanistan; (2) DOD, State, and USAID vet non-U.S. firms for links to terrorist and insurgent groups in Afghanistan; and (3) DOD has implemented GAO's past recommendations. The testimony is based on GAO's recently published reports and testimonies on operational contract support, including a June 2011 report on vetting of non-U.S. vendors in Afghanistan, as well as providing preliminary observations as a result of ongoing audit work in Afghanistan. GAO's work included analyses of a wide range …

Testimony issued by the Government Accountability Office with an abstract that begins "The National Museum of the American Indian Act of 1989 (NMAI Act), as amended in 1996, generally requires the Smithsonian Institution to inventory and identify the origins of its Indian and Native Hawaiian human remains and objects placed with them (funerary objects) and repatriate them to culturally affiliated Indian tribes upon request. According to the Smithsonian, two of its museums--the American Indian and the Natural History Museums--have items that are subject to the NMAI Act. The Native American Graves Protection and Repatriation Act (NAGPRA), enacted in 1990, includes similar requirements for federal agencies and museums. The National NAGPRA office, within the Department of the Interior's National Park Service, facilitates the governmentwide implementation of NAGPRA. Each act requires the establishment of a committee to monitor and review repatriation activities. GAO's testimony is based on its July 2010 report on NAGPRA implementation (GAO-10-768) and its May 2011 report on Smithsonian repatriation (GAO-11-515). The testimony focuses on the extent to which key federal agencies have complied with NAGPRA's requirements and the extent to which the Smithsonian has fulfilled its repatriation requirements."

Testimony issued by the Government Accountability Office with an abstract that begins "The U.S. Postal Service (USPS) recently reported that its financial results for the first half of this fiscal year--a net loss of $2.6 billion--are worse than projected. USPS expects continued financial challenges as mail volume continues to decline. Most notable is the decline of First-Class Mail (its most profitable mail) by over 25 billion pieces, or about 25 percent, over the past decade. GAO has reported on proposals to revise USPS pension and retiree health obligations, but such actions alone will not be sufficient to address the accelerating volume decline and changing use of the mail. This statement discusses (1) why it is important to restructure USPS's networks and (2) what actions are needed to facilitate additional progress. This statement is based primarily on past and ongoing GAO work."

Other written product issued by the Government Accountability Office with an abstract that begins "This report presents the Government Accountability Office's (GAO) Performance Plan for Fiscal Year 2012. In the spirit of the Government Performance and Results Act, this annual plan informs the Congress and the American people about what we expect to accomplish on their behalf in the coming fiscal year. It sets forth our plan to make progress toward achieving our strategic goals for serving the Congress and the American people. This framework not only shows the relationship between our strategic goals and strategic objectives, but also show major themes that could potentially affect our work."

Other written product issued by the Government Accountability Office with an abstract that begins "This report presents the highlights of GAO's fiscal year 2010 Performance and Accountability Report. The Government Accountability Office, the audit, evaluation, and investigative arm of the Congress, exists to support the Congress in meeting its constitutional responsibilities and to help improve the performance and ensure the accountability of the federal government for the benefit of the American people. GAO examines the use of public funds; evaluates federal programs and policies; and provides analyses, recommendations, and other assistance to help the Congress make informed oversight, policy, and funding decisions. To fulfill its mission, GAO organizes and manages its resources to support four broad strategic goals. These include helping to address challenges to the well-being and financial security of the American people, responding to changing security threats and global interdependence, and transforming the federal government to address national challenges. Strategic goal 4 is an internal goal focused on enhancing GAO's value through improving its efficiency, effectiveness, and quality, and institutional stewardship and resource management. GAO maintains a workforce of highly trained professionals across a breadth of academic and scientific disciplines. About three-quarters of the approximately 3,200 employees are …

Testimony issued by the Government Accountability Office with an abstract that begins "The Department of the Interior oversees oil and gas activities on leased federal lands and waters. Revenue generated from federal oil and gas production is one of the largest nontax sources of federal government funds, accounting for about $9 billion in fiscal year 2009. Since the April 2010 explosion on board the Deepwater Horizon, Interior has been in the midst of restructuring the bureaus that oversee oil and gas development. Specifically, Interior's Bureau of Land Management (BLM) oversees onshore federal oil and gas activities; the Bureau of Ocean Energy Management, Regulation, and Enforcement (BOEMRE)--created in May 2010--oversees offshore oil and gas activities; and the newly established Office of Natural Resources Revenue (ONRR) is responsible for collecting royalties on oil and gas produced from both onshore and offshore federal leases. Prior to BOEMRE, the Minerals Management Service's (MMS) Offshore Energy and Minerals Management Office oversaw offshore oil and gas activities and revenue collection. In 2011, GAO identified Interior's management of oil and gas resources as a high risk issue. GAO's work in this area identified challenges in five areas: (1) reorganization, (2) balancing responsibilities, (3) human capital, (4) revenue …

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony discusses highlights of GAO's report on the Environmental Protection Agency's (EPA) implementation of requirements for determining whether additional drinking water contaminants warrant regulation. The number of potential drinking water contaminants is vast--as many as tens of thousands of chemicals may be used across the country, and EPA has identified more than 6,000 chemicals that it considers to be the most likely source of human or environmental exposure. The potential health effects of exposure to most of these chemicals, and the extent of their occurrence in drinking water, are unknown. Under 1996 amendments to the Safe Drinking Water Act, every 5 years EPA is to determine for at least five contaminants whether regulation is warranted, considering those that present the greatest public health concern. EPA issued final regulatory determinations in 2003 and 2008 on a total of 20 contaminants, deciding in each case not to regulate. EPA did not recommend any new contaminants for regulation until February 2011, when it reversed its controversial 2008 preliminary decision to not regulate perchlorate, an ingredient in rocket fuel and other products. This statement summarizes our report being released today that …