Correspondence issued by the Government Accountability Office with an abstract that begins "The Department of the Treasury Inspector General for Tax Administration (TIGTA) audits and investigates the Internal Revenue Service's (IRS) operations to (1) promote economy and efficiency and detect and prevent fraud and abuse and (2) recommend actions for improvement. TIGTA was established by the Internal Revenue Service Restructuring and Reform Act of 1998 (IRS Reform Act), which amended the Inspector General Act of 1978 (IG Act), to include an independent inspector general (IG) to provide oversight of IRS's activities, programs, and offices. This report responds to a Congressional request that we review the activities of TIGTA. We are providing information regarding (1) TIGTA's budget and staffing levels; (2) TIGTA's audit and investigative coverage of IRS, including oversight of IRS's offices and identified weaknesses in IRS's operations, and audit coverage of specific requirements of the IRS Reform Act; (3) TIGTA's audit and investigative accomplishments; (4) the quality assurance program, including the results of peer reviews; and (5) the audit follow-up process to track IRS's implementation of TIGTA's audit recommendations."

Correspondence issued by the Government Accountability Office with an abstract that begins "Telecommuting, or telework--meaning work that is performed at an employee's home or at a work location other than a traditional office--has gained widespread attention over the past decade in both the public and private sectors, offering a variety of potential benefits to employers, employees, and society. On July 29, 2005, we briefed Congress on the results of our review of telework methodologies at the Departments of Commerce (DOC), Justice (DOJ), State, the Small Business Administration (SBA), and the Securities and Exchange Commission (SEC). This report transmits the information provided during that briefing. Specifically, Congress had asked us to provide information on and analysis of the methodology that each of the five agencies used to define employees eligible to telecommute, the methods each agency used to make telecommuting opportunities available to eligible employees and what those opportunities are, and how each agency defines and measures telecommuting participation rates."

Correspondence issued by the Government Accountability Office with an abstract that begins "The Department of Defense (DOD) submitted to the Congress on July 29, 2005 a report entitled Defense Commercial Communications Satellite Services Procurement Process. In response to direction from the Committee on Armed Services, United States Senate, we reviewed DOD's report to determine the extent to which it addressed the seven recommendations contained in our December 2003 report on how DOD procures fixed commercial satellite bandwidth services. On September 2, 2005, we briefed the Committee on the results of our review. This letter summarizes and transmits that briefing."

Correspondence issued by the Government Accountability Office with an abstract that begins "The Secretary of Treasury, in coordination with the Director of the Office of Management and Budget (OMB), is required to annually prepare and submit audited financial statements of the U.S. government to the President and Congress. We are required to audit these consolidated financial statements (CFS) and report on the results of our work. An issue meriting concern and close scrutiny that emerged during our fiscal year 2004 CFS audit was the growing number of Chief Financial Officers (CFO) Act agencies that restated certain of their financial statements for fiscal year 2003 to correct errors. Errors in financial statements can result from mathematical mistakes, mistakes in the application of accounting principles, or oversight or misuse of facts that existed at the time the financial statements were prepared. Frequent restatements to correct errors can undermine public trust and confidence in both the entity and all responsible parties. Further, when restatements do occur, it is important that financial statements clearly communicate, and readers of the restated financial statements understand, that the financial statements originally issued by management in the previous year and the opinion thereon should not be used. Because …

Testimony issued by the Government Accountability Office with an abstract that begins "In 2004, the Forest Service reported to the Congress that it had a backlog of nearly 900,000 acres of land needing reforestation--the planting and natural regeneration of trees. Reforestation and subsequent timber stand improvement treatments, such as thinning trees and removing competing vegetation, are critical to restoring and improving the health of our national forests after timber harvests or natural disturbances such as wildland fires. GAO was asked to (1) examine the reported trends in federal lands needing reforestation and timber stand improvement, (2) identify the factors that have contributed to these trends, and (3) describe any potential effects of these trends that Forest Service officials have identified. This testimony is based on GAO's report Forest Service: Better Data Are Needed to Identify and Prioritize Reforestation and Timber Stand Improvement Needs (GAO-05-374), being released today."

Testimony issued by the Government Accountability Office with an abstract that begins "Terrorist attacks on chemical facilities could severely damage the U.S. economy and public health. About 15,000 facilities produce, use, or store large amounts of chemicals that pose the greatest risk to human health and the environment. While the Environmental Protection Agency (EPA) formerly had the lead role in federal efforts to ensure chemical facility security, the Department of Homeland Security (DHS) is now the lead federal agency responsible for coordinating government and private efforts to protect these facilities from terrorist attacks. This testimony is based on GAO's past work on chemical facility security and focuses on (1) the attractiveness of chemical facilities as terrorist targets, (2) their diversity and risks, (3) federal security requirements for these facilities, and (4) federal and industry efforts to improve facility security."

Testimony issued by the Government Accountability Office with an abstract that begins "In fiscal year 2003, the Department of Housing and Urban Development (HUD) paid about $28 billion to help some 5 million low-income tenants afford decent rental housing. HUD has three major programs: the Housing Choice Voucher (voucher) and public housing programs, administered by public housing agencies, and project-based Section 8, administered by private property owners. As they are every year, some payments were too high or too low, for several reasons. To assess the magnitude and reasons for these errors, HUD established the Rental Housing Integrity Improvement Project (RHIIP). This testimony, based on a report issued in February 2005, discusses the sources and magnitude of improper rent subsidy payments HUD has identified and the steps HUD is taking to address them."

Testimony issued by the Government Accountability Office with an abstract that begins "The federal government must have the capacity to plan more strategically, react more expeditiously, and focus on achieving results. Critical to the success of this transformation are the federal government's people--its human capital. Yet, in many cases the federal government has not transformed how it classifies, compensates, develops, and motivates its employees to achieve maximum results within available resources and existing authorities. A key question is how to update the federal government's compensation system to be market-based and more performance-oriented. To further the discussion of federal pay reform, GAO partnered with key human capital stakeholders to convene a symposium in March 2005 to discuss public, private, and nonprofit organizations' successes and challenges in designing and managing market-based and more performance-oriented pay systems. This testimony presents the strategies that organizations considered in designing and managing market-based and more performance-oriented pay systems and describes how they are implementing them."

Other written product issued by the Government Accountability Office with an abstract that begins "Critical to the success of the federal government's transformation are its people--human capital. Yet the government has not transformed, in many cases, how it classifies, compensates, develops, and motivates its employees to achieve maximum results within available resources and existing authorities. One of the questions being addressed as the federal government transforms is how to update its compensation system to be more market based and performance oriented. To further the discussion of federal pay reform, GAO, the U.S. Office of Personnel Management, the U.S. Merit Systems Protection Board, the National Academy of Public Administration, and the Partnership for Public Service convened a symposium on March 9, 2005, to discuss organizations' experiences with market-based and more performance-oriented pay systems. Representatives from public, private, and nonprofit organizations made presentations on the successes and challenges they experienced in designing and managing their market-based and more performance-oriented pay systems. A cross section of human capital stakeholders was invited to further explore these successes and challenges and engage in open discussion. While participants were asked to review the overall substance and context of the draft summary, GAO did not seek consensus …

Correspondence issued by the Government Accountability Office with an abstract that begins "Federal government purchases of goods and services have grown to more than $300 billion annually. The Federal Procurement Data System-Next Generation (FPDS-NG) is the only governmentwide system for obtaining information on how these funds are being spent. The FPDS-NG was intended to improve the prior FPDS system in several ways, including providing more timely and accurate data; enabling users to generate their own reports; and providing easier user access to data. The system was developed by Global Computer Enterprises, Inc., (GCE) under contract with the General Services Administration (GSA). The FPDS-NG is currently in a transition period, which is scheduled to end by October 2005. We initiated a review to assess the extent to which FPDS-NG has demonstrated the intended improvements, and to determine whether the FPDS-NG is currently capable of collecting and reporting on interagency contracting data. We reviewed documents related to FPDS-NG; held discussions with officials from GSA, GCE, and the Office of Management and Budget (OMB), and with private sector and government users. We also made numerous attempts to use the system to generate reports."

A statement of record issued by the Government Accountability Office with an abstract that begins "The Internal Revenue Service (IRS) has been shifting its priorities from taxpayer service to enforcement and its management of Business Systems Modernization (BSM) from contractors to IRS staff. Although there are sound reasons for these adjustments, they also involve risks. With respect to the fiscal year 2006 budget request, GAO assessed (1) how IRS proposes to balance its resources between taxpayer service and enforcement programs and the potential impact on taxpayers, (2) status of IRS's efforts to develop and implement the BSM program, and (3) the progress IRS has made in implementing best practices in developing its Information Technology (IT) operations and maintenance budget."

Testimony issued by the Government Accountability Office with an abstract that begins "Long-term care relies heavily on financing by public payers, especially Medicaid, and has significant implications for state budgets as well as the federal budget. It includes an array of health, personal care, and supportive services provided to persons with physical or mental disabilities. As the baby boom generation ages, the number of elderly with disabilities will greatly expand the demand for long-term care services and will impose greater burdens on federal and state budgets. GAO was asked to discuss the budgetary and other challenges resulting from the anticipated increase in demand for long-term care services. This testimony addresses (1) the pressure that entitlement spending for Medicare, Medicaid, and Social Security is expected to exert on the federal budget in coming decades; (2) how the aging of the baby boom population will increase the demand for long-term care services; and (3) how these trends will affect the current and future financing of long-term care services, particularly in federal and state budgets. The testimony also highlights several considerations for any possible reforms of long-term care financing. This testimony updates prior GAO work, particularly Long-Term Care: Aging Baby Boom Generation Will …

Correspondence issued by the Government Accountability Office with an abstract that begins "In November 2004, we issued our report on the results of our audit of the Internal Revenue Service's (IRS) financial statements as of, and for the fiscal years ending, September 30, 2004 and 2003, and on the effectiveness of its internal controls as of September 30, 2004. We also reported our conclusions on IRS's compliance with significant provisions of selected laws and regulations and on whether IRS's financial management systems substantially comply with requirements of the Federal Financial Management Improvement Act of 1996. A separate report on the implementation status of recommendations from our prior IRS financial audits and related financial management reports, including this one, will be issued shortly. The purpose of this report is to discuss issues identified during our fiscal year 2004 audit regarding internal controls that could be improved for which we do not currently have any recommendations outstanding. Although not all of these issues were discussed in our fiscal year 2004 audit report, they all warrant management's consideration."

Correspondence issued by the Government Accountability Office with an abstract that begins "In May 2005, we issued our report expressing an opinion on the Securities and Exchange Commission's (SEC) fiscal year 2004 financial statements and an opinion on SEC's internal controls as of September 30, 2004. We also reported on the results of our tests of SEC's compliance with selected provisions of laws and regulations during fiscal year 2004. Our report on SEC's fiscal year 2004 financial statements identified reportable conditions in the internal controls over financial reporting that we considered to be material weaknesses. These weaknesses related to SEC's controls over (1) recording and reporting disgorgements and penalties pertaining to those who violate securities laws, (2) preparing financial statements and related disclosures, and (3) information security. In March 2005, we reported on the information security weaknesses, making six recommendations to address those weaknesses. The purpose of this report is to provide SEC with 18 recommendations to addresses the remaining weaknesses concerning disgorgements and penalties, and financial statement preparation and reporting."

Testimony issued by the Government Accountability Office with an abstract that begins "In January 2004, Congress established the Millennium Challenge Corporation (MCC) to administer the Millennium Challenge Account. MCC's mission is to promote economic growth and reduce extreme poverty in developing countries. The act requires MCC to rely to the maximum extent possible on quantitative criteria in determining countries' eligibility for assistance. MCC will provide assistance primarily through compacts--agreements with country governments. MCC aims to be one of the top donors in countries with which it signs compacts. For fiscal years 2004 and 2005, Congress appropriated nearly $2.5 billion for the Millennium Challenge Corporation; for fiscal year 2006, the President is requesting $3 billion. GAO was asked to monitor MCC's (1) process for determining country eligibility, (2) progress in developing compacts, (3) coordination with key stakeholders, and (4) establishment of management structures and accountability mechanisms."

Testimony issued by the Government Accountability Office with an abstract that begins "Congress asked GAO to testify on the status of the National Aeronautics and Space Administration's (NASA) financial management reform efforts. NASA faces major financial management challenges that, if not addressed, will weaken its ability to manage its highly complex programs. NASA has been on GAO's high-risk list since 1990 because of its failure to effectively oversee its contracts, due in part to the agency's lack of accurate and reliable information on contract spending. GAO's statement focuses on (1) NASA's key financial management challenges, (2) how NASA's financial management challenges compare with other federal agencies, (3) GAO's assessment of NASA's progress toward implementing recommendations aimed at improving its financial management system, and (4) the steps NASA must take to reform its financial management organization. In its related report, released today, GAO recommends that NASA develop an integrated enterprise master schedule and milestones--including improvement activities and plans, dates for completion, performance measures, and clear accountability."

Correspondence issued by the Government Accountability Office with an abstract that begins "The Senate Appropriations Committee has expressed concern about the use of military construction budget authority for projects at overseas bases that may soon be obsolete due to changes being considered by DOD military services as well as the need for a more complete picture of future requirements than is typically available in annual budget requests. Accordingly, the conference report accompanying the fiscal year 2004 military construction appropriation bill directed DOD to prepare detailed comprehensive master plans for changing infrastructure requirements for U.S. military facilities in each of the overseas regional commands. In that regard, DOD was required to provide a baseline report on these plans with yearly updates on the status of those plans and their implementation with annual military construction budget submissions through 2009. Additionally, the fiscal year 2004 Senate military construction appropriation bill report required those plans to identify precise facility requirements, the status of properties being returned to host nations, and the funding requirements as well as the division of funding responsibilities between the United States and cognizant host nations. The Senate report also directed us to monitor the master plans developed and implemented for …

Correspondence issued by the Government Accountability Office with an abstract that begins "On June 21, 2005, we testified at the Subcommittee on Economic Development, Public Buildings, and Emergency Management Committee on Transportation and Infrastructure's oversight hearing on the judiciary's ability to pay for current and future space needs. This report responds to a June 23, 2005, request in which Congress asked additional questions about the Federal Buildings Fund (FBF) and the judiciary's efforts to manage its space needs. To respond to these questions, we primarily relied on our previous work and knowledge of these areas. We prepared this response during June and July 2005 in accordance with generally accepted government auditing standards. Because our response is primarily based on previously issued products, we did not seek agency comments on a draft of this report."

Testimony issued by the Government Accountability Office with an abstract that begins "In the 21st century our nation faces a growing fiscal imbalance. A demographic shift will begin to affect the federal budget in 2008 as the first baby boomers become eligible for Social Security benefits. This shift will increase as spending for federal health and retirement programs swells. Long-term commitments for these and other federal programs will drive a massive imbalance between spending and revenues that cannot be eliminated without tough choices and significant policy changes. Continued economic growth is critical and will help to ease the burden, but the projected fiscal gap is so great that it is unrealistic to expect that we will grow our way out of the problem. Early action to change existing programs and policies would yield the highest fiscal dividends and provide a longer period for prospective beneficiaries to make adjustments in their own planning. One of the potential policy changes is assisting older workers who want to stay in the workforce past retirement age. The Chairman and Ranking Member of the Senate Special Committee on Aging asked GAO to discuss demographic and labor force trends and the economic and fiscal need to …

Testimony issued by the Government Accountability Office with an abstract that begins "Federal regulation is a basic tool of government. Agencies issue thousands of rules and regulations each year to achieve goals such as ensuring that workplaces, air travel, and foods are safe; that the nation's air, water and land are not polluted; and that the appropriate amount of taxes are collected. The costs of these regulations are estimated to be in the hundreds of billions of dollars, and the benefits estimates are even higher. Over the past 25 years, a variety of congressional and presidential regulatory reform initiatives have been instituted to refine the federal regulatory process. This testimony discusses findings from the large number of GAO reports and testimonies prepared at the request of Congress to review the implementation of regulatory reform initiatives. Specifically, GAO discusses common strengths and weaknesses of existing reform initiatives that its work has identified. GAO also addresses some general opportunities to reexamine and refine existing initiatives and the federal regulatory process to make them more effective. GAO's prior reports and testimonies contain a variety of recommendations to improve particular reform initiatives and aspects of the regulatory process."

Testimony issued by the Government Accountability Office with an abstract that begins "The Department of Health and Human Services' (HHS) Low-Income Home Energy Assistance Program (LIHEAP) is a block grant program with recent annual funding of about $2 billion that provides fuel payment assistance and payments for home energy efficiency improvements for low-income households. As energy prices continue to rise, this assistance is growing more important to mitigate the impact of higher prices on low-income households. HHS awards LIHEAP funds by formula to all 50 states and the District of Columbia, federally or state-recognized Indian tribes and tribal organizations, and territories. These grantees then provide energy assistance payments to low-income households. Within LIHEAP, the Residential Energy Assistance Challenge Option (REACH) program funds demonstration projects to help low-income families reduce their energy usage. GAO was asked to provide information on (1) HHS's oversight of LIHEAP payments made by grantees and (2) GAO's 2001 review of LIHEAP's REACH program."

Testimony issued by the Government Accountability Office with an abstract that begins "Pursuant to the Accountability for Tax Dollars Act of 2002, the Securities and Exchange Commission (SEC) is required to prepare and submit to Congress and the Office of Management and Budget audited financial statements. GAO agreed, under its audit authority, to perform the initial audit of SEC's financial statements. GAO's audit was done to determine whether, in all material respects, (1) SEC's fiscal year 2004 financial statements were reliable, (2) SEC's management maintained effective internal control over financial reporting and compliance with laws and regulations, and (3) SEC's management complied with applicable laws and regulations. Established in 1934 to enforce the securities laws and protect investors, the SEC plays an important role in maintaining the integrity of the U.S. securities markets. GAO was asked by the Chairman of the Senate Subcommittee on Federal Financial Management, Government Information, and International Security, Committee on Homeland Security and Governmental Affairs, to present the results of its May 26, 2005, report, Financial Audit: Securities and Exchange Commission's Financial Statements for Fiscal Year 2004 (GAO-05-244)."

Testimony issued by the Government Accountability Office with an abstract that begins "The Department of Veterans Affairs (VA) provides disability compensation to veterans disabled by injuries or diseases that were incurred or aggravated while on active military duty. Under Individual Unemployability (IU) benefit regulations, a veteran can receive increased compensation at the total disability compensation rate if VA determines that the veteran is unemployable because of service-connected disabilities. GAO has reported that numerous technological and medical advances, combined with changes in society and the nature of work, have increased the potential for people with disabilities to work. Yet VA has seen substantial growth of IU benefit awards to veterans over the last five years. In 2001 GAO reported that a growing number of private insurance companies in the United States have focused their programs on developing and implementing strategies to enable people with disabilities to return to work. Our testimony will describe how U.S. private insurers facilitate return to work in three key areas: (1) the eligibility assessment process, (2) work incentives, and (3) staffing practices. It will also compare these practices with those of VA's IU eligibility assessment process."