Testimony issued by the General Accounting Office with an abstract that begins "GAO appeared before Subcommittees on Oversight and Human Resources, House Committee on Ways and Means to discuss the results of our investigation of the extent to which states have found that companies manipulate state unemployment tax rates through a variety of methods in order to lower their unemployment taxes, a practice known as "SUTA dumping," and of the extent to which some consulting firms promote SUTA dumping methods. We conducted our investigation from March 2003 through June 2003 in accordance with quality standards for investigations as set forth by the President's Council on Integrity and Efficiency. To obtain an overview of the extent of the problem, we conducted a survey of unemployment insurance administrators, in the 50 states, the District of Columbia, U.S. Virgin Islands and Puerto Rico. Additionally, one of our agents, posing as a business owner who was looking for ways to reduce state unemployment insurance taxes, placed telephone calls to four consulting firms we identified through the Internet to determine whether they promote SUTA dumping techniques. We also interviewed officials of the Office of Workforce Security, Department of Labor to determine how the federal-state unemployment …

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the valuation of federal oil, focusing on: (1) the information the Minerals Management Service (MMS) used to justify the need for revising its regulations; (2) how MMS addressed concerns expressed by the oil industry and the states in developing these regulations; and (3) the feasibility of the government's taking its oil and gas royalties in kind, instead of in cash."

Testimony issued by the General Accounting Office with an abstract that begins "The Office of Pipeline Safety (OPS) oversees 2.2 million miles of pipelines that transport potentially dangerous materials, such as oil and natural gas. OPS has been slow to improve its oversight of the pipeline industry and implement critical pipeline safety improvements. As a result, OPS has the lowest rate of any transportation agency for implementing the recommendations of the National Transportation Safety Board. In recent years, OPS has taken several steps to improve its oversight of the pipeline industry, including requiring "integrity management" programs for individual operators to assess their pipelines for risks, take action to mitigate the risks, and develop program performance measures. OPS has also (1) revised forms and procedures to collect more complete and accurate data, which will enable OPS to better assess the causes of incidents and focus on the greatest risks to pipelines; (2) allowed more states to oversee a broader range of interstate pipeline safety activities; and (3) increased the use of fines. OPS has made progress in responding to recommendations from the Safety Board and statutory requirements, but some key open recommendations and requirements, such as requiring pipeline operators to periodically …

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the details of Martin Frankel's insurance scandal, focusing on: (1) how the scam happened; (2) the regulatory weaknesses exposed by this scam; and (3) the crucial importance of regulatory information sharing."

Testimony issued by the General Accounting Office with an abstract that begins "Protecting the computer systems that support our critical operations and infrastructures has never been more important because of the concern about attacks from individuals and groups with malicious intent, including terrorism. These concerns are well founded for a number of reasons, including the dramatic increases in reported computer security incidents, the ease of obtaining and using hacking tools, the steady advance in the sophistication and effectiveness of attack technology, and the dire warnings of new and more destructive attacks. As with other large organizations, federal agencies rely extensively on computerized systems and electronic data to support their missions. Accordingly, the security of these systems and data is essential to avoiding disruptions in critical operations, as well as to helping prevent data tampering, fraud, and inappropriate disclosure of sensitive information. At the subcommittee's request, GAO discussed its analysis of recent information security audits and evaluations at 24 major federal departments and agencies."

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the reauthorization of the Senior Community Service Employment Program (SCSEP), focusing on the: (1) effect of the hold harmless provision on allocating funds to where needy elderly live; and (2) impact of the annual appropriations statutes on the distribution of SCSEP positions within states."

Testimony issued by the General Accounting Office with an abstract that begins "Federal housing assistance in rural America dates back to the 1930s, when most rural residents worked on farms. Without electricity, telephone service, or good roads connecting residents to population centers, residents were comparatively isolated and their access to credit was generally poor. These conditions led Congress to authorize separate housing assistance for rural residents, to be administered by USDA. Over time, the quality of the housing stock has improved and credit has become more readily available in rural areas. Also, advances in transportation, computer technology, and telecommunications have diminished many of the distinctions between rural and urban areas. These changes call into question whether rural housing programs still need to be maintained separately from urban housing programs, and whether RHS is adapting to change and managing its resources as efficiently as possible."

Testimony issued by the General Accounting Office with an abstract that begins "GAO reviewed the Department of Veterans Affairs' (VA) nonprofit research corporations, which receive funds primarily from non-VA sources to conduct medical research at VA facilities. Since VA's nonprofit corporations were first established, there has been limited oversight of their operations and contributions to VA research. Nonprofit corporations support VA's research environment by funding a portion of the department's research needs, such as laboratory equipment and improvements to infrastructure, and by providing flexible personnel and contracting arrangements to respond to investigators' needs. To detect conflict of interest, investigators on research projects administered by VA's nonprofit corporations are subject to federal statutes and regulations applicable to federal employees concerning conduct and conflicts of interest and may be required to disclose their financial interests. Institutional conflicts of interest are unlikely to occur in VA's nonprofit research corporations because they cannot own stock, have an equity interest in private companies, or obtain intellectual property rights. VA has delegated responsibility for monitoring and overseeing the activities of nonprofit corporations to the directors of VA medical centers; however, VA headquarters does not oversee and monitor corporations' financial activities and ensure that identified deficiencies are …

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the results of GAO's analysis of the financial health of the Federal Housing Administration's Mutual Mortgage Insurance Fund. GAO estimates that the Fund had an economic value of about $15.8 billion at the end of fiscal year 1999. This estimate implies a capital ratio of 3.20 percent, which is higher than the two-percent capital ratio mandated by law. Given the economic value of the Fund and the state of the economy at the end of fiscal year 1999, a two-percent capital ratio appears sufficient to withstand moderately severe economic downturns that could lead to worse-than-expected loan performance. Some more severe downturns that GAO analyzed also did not cause the estimated capital ratio to decline by as much as two percentage points. Because of the nature of such analysis, GAO urges caution in concluding that the estimated value of the Fund today implies that the Fund would necessarily withstand any particular economic scenario under all circumstances. Congress and the Secretary of Housing and Urban Development have taken and could take several steps to influence the economic value of the Fund. Actions that influence the Fund's reserve …

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the National Park Service's (NPS) structural fire safety efforts, focusing on: (1) whether the parks were meeting their structural fire safety responsibilities; (2) if the parks were not meeting their responsibilities, why not; and (3) what efforts were underway to address any identified problems."

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the effects of recent Medicare payment reforms, focusing on the Balanced Budget Act of 1997 (BBA) payment reforms affecting home health agencies, skilled nursing facilities (SNF), and the health plans in Medicare's managed care program, known as Medicare Choice."

Testimony issued by the General Accounting Office with an abstract that begins "Water quality standards comprise designated uses and water quality criteria. These standards are critical in making accurate, scientifically based determinations about which of the nation's waters are most in need of cleanup. GAO examined the extent to which (1) states are changing designated uses when necessary, (2) EPA is assisting states toward that end, (3) EPA is updating the "criteria documents" states use to develop the pollutant limits needed to measure whether designated uses are being attained, and (4) EPA is assisting states in establishing criteria that can be compared with reasonably obtainable monitoring data."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses efforts to link resources to results--also known as "performance budgeting." During the past decade, Congress and several administrations have put in place a structure for increasing the focus on and accountability for government performance. Federal agencies have been working to carry out the Government Performance Act, which requires the development of periodic strategic and annual performance plans and reports. Absent structural change in a number of major entitlement programs, budgetary flexibility will continue to decline and eventually disappear--while demands for new federal resources to address such emerging challenges as homeland security and other issues become more compelling and pressing. Given the country's longer-range fiscal imbalance, there is also a need to broaden the measures and focus of the federal budget process to accommodate these goals. The nation's fiscal challenges escalate rapidly just beyond the 10-year budget projection period. As a result, new metrics and mechanisms are needed to better highlight the longer-term implications of existing programs and proposed new fiscal commitments. Furthermore, in order to address emerging challenges, it is necessary to address both retirement and health programs encumbering the nation's fiscal future, in addition …

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed financial management at the Department of Education, focusing on: (1) Eduction's current financial management status as evidenced by its fiscal year (FY) 1999 financial audit results and the corrective actions it has taken to resolve weaknesses identified in that audit; and (2) the relationship between the audit findings and the potential for waste, fraud, and abuse."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the budget process established by the Budget Enforcement Act, which will expire in fiscal year 2002. Because the goal of achieving zero deficits has been achieved, the focus of the budget process has shifted to to the allocation of surpluses among debt reduction, spending increases, and tax cuts. The budget process should be designed to avoid what has been described as the year-end "train wreck." A year-end "train wreck" results from a failure to reach agreement--or at least a compromise acceptable to all parties--earlier in the year. Although it is possible that early agreement on some broad parameters could facilitate a smoother process, it is not clear that such an agreement will always prevent gridlock--it may just come earlier. Two ideas that have been proposed to avert the year-end disruption caused by an inability to reach agreement on funding the government include joint budget resolutions and biennial budgeting. In discussing alternatives for improving the budget process, there is a broad consensus among observers and budget analysts that the spending constraints established by the act are necessary even with the advent of actual and projected surpluses. …

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the improper trafficking of food stamp benefits, focusing on: (1) federal efforts to identify storeowners who engage in trafficking; (2) the amount of penalties assessed and collected against these storeowners; and (3) the extent to which states with statewide electronic benefit transfer (EBT) systems are identifying and disqualifying recipients who engage in trafficking."

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the Department of State's progress in addressing the challenges it faces in its efforts to achieve a more secure, efficient, and effective network of operations."

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the states' roles in implementing the Safe Drinking Water Act, focusing on: (1) how the Environmental Protection Agency's (EPA) budget requests for state program implementation compared to the amounts that are authorized and estimated to be needed; (2) how much the states have spent since the passage of the 1996 amendments to implement their drinking water programs and how their expenditures compare with estimated needs; (3) what effects federal funding levels have had, and could have in the future, on the states' ability to implement their programs; and (4) what existing practices have the potential to help the states implement their drinking water programs more effectively and efficiently."

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the impact of crime and corruption on the implementation of the Dayton Peace Agreement, focusing on: (1) how organized crime and public sector corruption have affected implementation of the agreement in Bosnia; (2) what the international community has done to improve Bosnia's law enforcement and judicial system and reduce corruption; and (3) how international assistance resources are being safeguarded and whether such assistance is being used by Bosnia in place of domestic revenues lost due to crime and corruption."

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the year 2000 risks facing the nation, focusing on: (1) the federal government's progress and remaining challenges in correcting its systems; (2) state and local government year 2000 issues; and (3) an overview of the available information on the readiness of key public infrastructure and economic sectors."

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the Postal Service's (USPS) overall performance as well as the challenges that persist as mail volume growth continues to slow and competition from the private sector increases."

Testimony issued by the General Accounting Office with an abstract that begins "The Department of Defense (DOD) is on the brink of operations in Iraq while seeking to respond to changes in security threats and still meeting the challenges transforming the military. DOD spends an average of $150 billion annually on acquisitions that support these and other missions. Moreover, this investment is expected to grow considerably in the future as DOD works to keep legacy systems while investing in future capabilities such as unmanned aircraft, satellite networks, and information and communications systems. Such demands clearly require DOD to be as efficient and effective as possible in obtaining the systems, services, and equipment it needs to carry out its mission. But GAO's reviews continue to show that DOD is not carrying out acquisitions cost-effectively and that the acquisitions themselves are not always achieving DOD's objectives. Pervasive problems persist regarding high-risk acquisition strategies and unrealistic cost, schedule, and performance estimates. This testimony focuses on two aspects fundamental to successful acquisitions in DOD: (1) the implementation of sound policies for making sourcing decisions, and (2) the adoption of best practices."

Testimony issued by the General Accounting Office with an abstract that begins "The Immigration and Naturalization Service (INS) developed strategies in the 1990s to control illegal immigration across U.S. borders and to address enforcement priorities within the country. In 1994, INS's Border Patrol issued a strategy to deter illegal entry through "prevention through deterrence;" that is, to raise the risk of being apprehended for illegal aliens to where they would consider it futile to try to enter. The plan called for targeting resources in a phased approach, starting in areas with the greatest illegal activity. In 1999, INS issued its Interior Enforcement Strategy to focus resources on areas that would have the greatest impact on reducing the size and annual growth of the illegal resident population. The strategy established the following five areas: (1) identify and remove criminal aliens and minimize recidivism; (2) deter, dismantle, and diminish smuggling or trafficking of aliens; (3) respond to community reports and complaints about illegal immigration; (4) minimize immigration benefit fraud and other document abuse; and (5) block and remove employers' access to undocumented workers. For these to be effective, INS needs better data to determine staff needs, reliable information technology, clear and consistent …

Testimony issued by the General Accounting Office with an abstract that begins "Compliance agreements between the Department of Energy (DOE) and its regulators specify cleanup activities and milestones that DOE has agreed to achieve. The 70 compliance agreements at DOE sites vary, but can be divided into three main types. These are: (1) agreements specifically required by the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 to address cleanup of federal sites on EPA's national priorities list or by the Resource Conservation and Recovery Act of 1976 to address the management of mixed radioactive and hazardous waste at DOE facilities; (2) court-ordered agreements resulting from lawsuits initiated primarily by states; and (3) other agreements, including state administrative orders enforcing state hazardous waste management laws. DOE reported completing about 80 percent of its milestones by the time originally scheduled in the agreements. The cost of complying with these agreements is not specifically identified in the DOE budget submitted to Congress. Individual DOE sites develop annual compliance cost estimates as part of their budget requests. However, DOE headquarters officials adjust those individual site estimates to reflect national priorities and to reconcile various competing demands. Compliance agreements are site-specific and are not …