Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit report covering the financial statements of the Reserve Officers Association of the United States for fiscal year 2000. GAO found no reportable instances of noncompliance. The audit report included the auditors' opinion 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 "As part of their plan to form an international alliance, American Airlines (AA) and British Airways (BA) have sought immunity from antitrust laws in the United States and Europe. The extent to which the alliance might come to dominate the routes between major U.S. cities and London will depend on whether other airlines are able to enter this market under an open skies agreement. Some passengers may benefit from the larger network created by an AA/BA alliance, but GAO believes that the overall benefits of such an alliance may be limited for several reasons. First, continuing constraints in slots, gates, and terminal facilities at London's Heathrow Airport and BA's corporate strategy for reducing its overall capacity would limit potential benefits. Second, several carriers are already serving many of the markets that the AA/BA alliance plans to serve. Third, neither AA nor BA claim that the alliance would generate substantial operational savings that could be passed on to stockholders, employees, and customers. A full review of the competitive effects of this and other alliances is needed because GAO's analysis suggests that a grant of antitrust immunity could enable the …

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit report covering the financial statements of the National Conference on Citizenship for fiscal year 2000. GAO found no reportable instances of noncompliance. The audit report included the auditors' opinion 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 "The General Services Administration's (GSA) two online procurement systems--GSA Advantage! and information Technology Solutions Shop--lack basic management controls to ensure the systems produce reliable data, can not be inappropriately modified, and provide continuous service. These controls are increasingly important because government agencies are expected to increase their use of these systems and GSA relies heavily on contractors for systems operations and maintenance. Moreover, Congress and other oversight entities need to be able to rely on these systems to assess the effectiveness of government contracting programs."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit reports covering the financial statements of the Navy Wives Clubs of America, for fiscal years 1998-2000. 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."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit report covering the financial statements of the Vietnam Veterans of America, Inc., for fiscal year 2000. GAO found no reportable instances of noncompliance. The audit report 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 report covering the financial statements of the Women's Army Corps Veterans' Association, for fiscal year 2000. GAO found no reportable evidence of noncompliance. The audit report 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 "The 1997 peer review of the Department of Defense (DOD) Inspector General (IG) done by the Environmental Protection Agency IG resulted in a qualified opinion. The peer review report questioned the quality assurance system used by the DOD IG and said that the reviewed audits did not fully comply with Government Auditing Standards. The 2000 peer review done by the Department of the Treasury IG for Tax Administration (TIGTA) also resulted in a unqualified opinion. Although TIGTA cited several problems, the peer review report concluded that the quality assurance system used by the DOD IG reasonably ensured compliance with auditing standards. However, after the peer review had been completed, a letter was sent to Congress, the press, and others questioning the integrity of the documentation that the DOD IG provided to the TIGTA peer review staff. A DOD IG internal investigation later confirmed that the work papers for one of the audits chosen for peer review had been altered and destroyed. The report concluded that these actions violated Government Auditing Standards, internal DOD IG audit policies, and the expectations of the external peer review staff. TIGTA then withdrew …

Correspondence issued by the General Accounting Office with an abstract that begins "This letter responds to allegations of improper conduct by senior Federal Bureau of Investigations (FBI) personnel in connection with an October 1997 retirement dinner for former FBI Assistant Director Larry Potts. The allegations asserted that a conference was scheduled at the FBI Training Academy in Quantico, Virginia, to provide a reason for senior FBI personnel to travel to Mr. Potts' retirement dinner in Arlington, Virginia, at government expense. GAO determined that the October 1997 FBI investigation of the alleged improper scheduling of a training conference was thorough. FBI and Justice Department investigators reviewed the actions of eight FBI Senior Executive Service (SES) employees. The FBI's Deputy Director issued letters of censure to three of the eight. Two individuals retired before receiving proposed letters of censure. The three remaining individuals were not disciplined because they either had attended both the training conference and the retirement dinner or had some other explanation for traveling to Washington, D.C. The FBI's Law Enforcement Ethics Unit did a study in September 1999 that concluded that a perception existed of a double standard in disciplining SES and non-SES employees. The travel cost to the …

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit report covering the financial statements of the National Society, Daughters of the American Colonists for fiscal year 2000. GAO found no reportable instances of noncompliance. The audit report 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 1999 and 2000. 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."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit reports covering the financial statements of the National Ski Patrol System, Incorporated, for fiscal years 2000 and 1999. GAO found no reportable instances of noncompliance. The audit report included the auditors' opinion 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 report covering the financial statements of the United Services Organization, Incorporated, for fiscal year 1999. GAO found no reportable instances of noncompliance. The audit report included the auditors' opinion 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 "The process and types of data the Small Business Administration (SBA) uses to estimate the subsidy cost of the 7(a)General Business Loan Program are generally reasonable and comply with existing Office of Management and Budget guidance. GAO's review of actual and originally estimated defaults and recoveries showed that, on a cumulative basis since 1992, defaults were overestimated by approximately $2 billion and recoveries were overestimated by approximately $450 million. During this same period, SBA overestimated the cost of the 7(a) program by $958 million as evidenced from a trend of downward reestimates. The majority of these downward reestimates can be attributed to the overestimate of defaults. For those loan guarantees approved from fiscal years 1992 through 1997, GAO was unable to determine the specific reason for the overestimate of defaults primarily because the basis SBA used for the estimated default rate for these years was not documented. During this period reestimates account for approximately 84 percent of the total $958 million reestimate. SBA began using its current methodology in 1998. Under this method, high default rates associated with loan guarantees approved in fiscal years 1986 through 1990 contributed …

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the Forest Services total costs associated with its timber sales program for fiscal years 1998 and 1999. Serious accounting and financial reporting deficiencies at the Forest Service during fiscal years 1998 and 1999 precluded GAO from making an accurate determination of the total federal costs for the timber sales program. These deficiencies made the Forest Service's cost information totally unreliable."

Testimony issued by the General Accounting Office with an abstract that begins "A safe and secure civil aviation system is a critical component of the nation's overall security, physical infrastructure, and economic foundation. Billions of dollars and a myriad of programs and policies have been devoted to achieving such a system. Although it is not fully known at this time what actually occurred or what all the weaknesses in the nation's aviation security apparatus are that contributed to the horrendous terrorist acts of Semptember 11, 2001, it is clear that serious weaknesses exist in the nation's aviation security system and that their impact can be far more devastating than previously imagined. There are security concerns with (1) airport access controls, (2) passenger and carry-on baggage screening, and (3) alternatives to current screening practices, including practices in selected other countries. Controls for limiting access to secure areas, including aircraft, have not always worked as intended. In May of 2000, special agents used counterfeit law enforcement badges and credentials to gain access to secure areas at two airports, bypassing security checkpoints and walking unescorted to aircraft departure gates. In June 2000, testing of screeners showed that significant, long-standing weaknesses--measured by the screeners' …

Testimony issued by the General Accounting Office with an abstract that begins "In recent years, the Washington Metropolitan Area Transit Authority's (WMATA) public transit system has experienced safety and reliability problems, including equipment breakdowns, delays in scheduled service, unprecedented crowding on trains, and accidents and tunnel fires. WMATA is examining ways to ease crowding on the systems rail cars and determining whether and how to expand Metrorail maintenance and repair shop capacity as WMATA acquires nearly 200 new rail cars. WMATA has also undertaken a comprehensive program for infrastructure renewal, and it is now studying improvements or modifications to accommodate the goal of doubling ridership by the year 2025. WMATA's safety program has evolved since the mid-1990s, when a series of accidents and incidents led to several independent reviews citing the need for program improvements. WMATA monitors safety and crime statistics and has several ongoing targeted efforts to reduce safety incidents and deter crime on its transit systems. WMATA has adopted several of the best capital investment practices used by leading public and private sector organizations, but it could benefit by establishing a more formal, disciplined framework for its capital decision-making process. WMATA has used a wide variety of innovative …

Testimony issued by the General Accounting Office with an abstract that begins "The Government Paperwork Elimination Act (GPEA) requires that by 2003 federal agencies provide the public the option of submitting, maintaining, and disclosing required information--such as employment records, tax forms, and loan applications--electronically, instead of on paper. In October 2000, federal agencies submitted GPEA implementation plans to the Office of Management and Budget (OMB), which is responsible for executive branch oversight of GPEA. The plans submitted by the the Department of the Treasury and the Environmental Protection Agency (EPA) generally provide the kind of information that was specified in OMB's July 2000 guidance. However, the Department of Defense's (DOD) plan did not describe the department's overall GPEA strategy and, in some cases, the data provided for specific information collections may be inaccurate, incomplete or duplicative. Officials at all three agencies said that they faced challenges in complying with GPEA, particularly with regard to implementing adequate security assurances for sensitive electronic transactions and in planning for and implementing computer network infrastructures. Furthermore, OMB will be challenged in providing oversight of agency GPEA activities because the plans submitted by the agencies go not document key strategic actions, nor do they specify …

Testimony issued by the General Accounting Office with an abstract that begins "The pricing of Medicare's part B-covered prescription drugs--largely drugs that cannot be administered by patients themselves--has been under scrutiny for years. Most of the part B drugs with the highest Medicare payments and billing volume fall into three categories: those that are billed for by physicians and typically provided in a physician office setting, those that are billed for by pharmacy suppliers and administered through a durable medical equipment (DME) item, and those that are also billed by pharmacy suppliers but are patient-administered and covered explicitly by statute. Studies show that Medicare sometimes pays physicians and other providers significantly more than their actual costs for the drugs. In September 2000, the Health Care Financing Administration's (HCFA)--now the Centers for Medicare and Medicaid Services--took steps to reduce Medicare's payment for part B-covered drugs by authorizing Medicare carriers, the contractors that pay part B claims, to use prices obtained in the Justice Department investigations of providers' drug acquisition costs. HFCA retracted this authority in November 2000 after providers raised concerns. GAO found that Medicare's method for establishing drug payments is flawed. Medicare pays 95 percent of the average wholesale price …

Testimony issued by the General Accounting Office with an abstract that begins "The United States now faces increasingly diverse threats that put great destructive power into the hands of small states, groups, and individuals. These threats range from cyber attacks on critical infrastructure to terrorist incidents involving weapons of mass destruction or infectious diseases. Efforts to combat this threat will involve federal agencies as well as state and local governments, the private sector, and private citizens. GAO believes that the federal government must address three fundamental needs. First, the government needs clearly defined and effective leadership with a clear vision carry out and implement a homeland security strategy and the ability to marshal the necessary resources to get the job done. Second, a national homeland security strategy should be based on a comprehensive assessment of national threats and risks. Third, the many organizations that will be involved in homeland security must have clearly articulated roles, responsibilities, and accountability mechanisms. Any strategy for homeland security must reduce risk where possible, assess the nation's vulnerabilities, and identify the critical infrastructure most in need of protection. To be comprehensive, the strategy should include steps to use intelligence assets or other means to identify …

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the benefits of increased federal funding for the National Railroad Passenger Corporation (Amtrak) and high-speed passenger rail systems. Amtrak made minimal progress in 2000 toward achieving operational self-sufficiency. Although Amtrak is required by law to achieve operational self-sufficiency by the end of 2002, the outlook is not bright. Amtrak reduced its "budget gap" by only $5 million and must achieve an additional $281 million in savings by the end of next year. In addition to the uncertainty over Amtrak's future, this is an opportunity to examine the future of intercity passenger rail. Federal costs are expected to be large. For example, the ultimate cost to build high-speed rail corridors is unknown, but it will certainly be in the many tens of billions of dollars. Much of the funding could be expected to come from the federal government. In deciding the future of intercity passenger rail, it is important for Congress to have realistic assessments of the benefits to the public from this mode of transportation. These assessments would help establish the role, if any, of intercity passenger rail service in the nation's transportation system and …

Testimony issued by the General Accounting Office with an abstract that begins "Research and Development (R&D) is vital to the long-term health of industry and the national economy. To join the ideas and resources of the research institutions--universities and colleges, federal laboratories, and nonprofit research centers--with the commercialization experience of small businesses, Congress authorized the Small Business Technology Transfer (STTR) Pilot Program in 1992 and reauthorized it in 1997. The STTR program is closely modeled on the Small Business Innovation Research (SBIR) Program. In preparation for the review and potential reauthorization of the STTR program, GAO obtained information from companies participating in the program. The companies reported that both they and the research institutions made considerable contributions to the R&D, such as knowledge or expertise essential to the project. They also created new partnerships that helped achieve technical objectives. However, the companies reported that they played a substantially greater role than the research institutions in originating the key ideas for the R&D. The companies further reported various results from the R&D, including the sales of products, processes, or services; the receipt of additional developmental funding beyond the original STTR funding; and patents granted. Finally, when asked for their view of …

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the U.S. government's disaster recovery and reconstruction program for countries that have been devastated by hurricanes. GAO found that the Agency for International Development (AID) and other U.S. agencies are using the disaster recovery assistance to bring about economic recovery, improve public health and access to education, provide permanent housing for displaced families, and improve disaster mitigation and preparedness. To achieve these broad objectives, AID is funding infrastructure construction and repair, technical assistance and training, loans for farmers and small businesses, and some commodities. After initial start-up problems, the U.S. disaster recovery and reconstruction program is proceeding, and most activities are scheduled for completion on or before December 31, 2001, as AID and congressional staff had informally agreed. To help ensure that funds are spent as intended, AID has channeled much of the disaster recovery assistance funding through cooperating partners with proven track records, contracted with management and financial services firms to handle disbursement to vulnerable partners, and hired contractors to monitor project quality. Although some activities have not gone as smoothly as planned, the missions have responded to concerns as they arose. The bottom …

Document issued by the Office of the Attorney General of Texas in Austin, Texas, providing an interpretation of Texas law. It provides the opinion of the Texas Attorney General, John Cornyn, regarding a legal question submitted for clarification; Whether state highway revenues may be invested in a toll road project without a requirement for repayment (RQ-0319-JC)