Correspondence issued by the Government Accountability Office with an abstract that begins "The conference report for the Fiscal Year 2005 Consolidated Appropriations Act required that we review the past and current methodologies used by the American Battle Monuments Commission (ABMC) and the Office of Management and Budget (OMB) to estimate exchange rates used in preparing the budgets for ABMC's foreign currency fluctuation account. This account is intended to maintain the spending power of funds appropriated for ABMC operations in the event that the U.S. dollar depreciates against the currencies used to pay for these operations, which include designing, constructing, operating, and maintaining permanent American military burial grounds in foreign countries. In light of recent low foreign currency fluctuation account levels, the appropriations committees' conferees were concerned with the failure of OMB to adequately address the effect of foreign currency rate fluctuations on ABMC in its original budget submission for fiscal year 2005, or through a supplementary budget request. In response to this mandate, we examined (1) ABMC's method of forecasting exchange rates in preparing budgets for the foreign currency fluctuation account prior to its fiscal year 2006 budget submission and OMB guidance on that method; (2) changes that occurred in …

Testimony issued by the Government Accountability Office with an abstract that begins "More than 5.5 billion pounds of explosives are used each year in the United States by private sector companies and government entities. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has authority to regulate explosives and to license privately owned explosives storage facilities. After the July 2004 theft of several hundred pounds of explosives from a local government storage facility, concerns arose about vulnerability to theft. This testimony provides information about (1) the extent of explosives thefts from state and local government facilities, (2) ATF's authority to regulate and oversee state and local government storage facilities, and (3) security measures in place at selected state and local government storage facilities. This information is based on a report GAO is releasing today on these issues."

Testimony issued by the Government Accountability Office with an abstract that begins "GAO testified before Congress on the progress on the Capitol Visitor Center (CVC) project. Our remarks will focus on (1) the Architect of the Capitol's (AOC) progress in managing the project's schedule since Congress's September 15 hearing on the project, (2) issues associated with the CVC's fire protection system, and (3) the project's costs and funding. Our ability to fully address these issues is limited by two important factors. First, AOC's sequence 2 construction contractor's--Manhattan Construction Company--September 2005 schedule reflects a number of significant changes, and AOC has not yet had the opportunity to fully evaluate these changes. Second, neither AOC nor its construction management contractor--Gilbane Building Company--has completed the evaluation of elements of the project schedule that we recommended during Congress's September 15 hearing. Thus, while we will discuss the schedule's status, we will not be able to provide specific estimated completion dates until AOC and its construction management contractor complete their assessments and we have the opportunity to evaluate them. Similarly, while we will discuss the status of the project's costs and funding, we will wait until the project schedule is fully reviewed and stabilized and …

Correspondence issued by the Government Accountability Office with an abstract that begins "In the past 30 years, the number of obese children has increased throughout the United States, leading some policy makers to rank childhood obesity as a critical public health threat. The rate of childhood obesity has more than tripled for children between the ages of 6 and 11 and also increased for children of other ages over the same period. According to a 2005 Institute of Medicine (IOM) report, there are approximately 9 million children nationwide over the age of 6 who are considered obese. An important consequence of childhood obesity is the increasing number of children experiencing illnesses and other health problems associated with obesity, such as hypertension and type II diabetes. The rise in obesity-related health conditions also introduces added economic costs. Between 1979 and 1999, obesity-associated hospital costs for children between the ages of 6 and 17 more than tripled, from $35 million to $127 million. Moreover, because studies suggest that obese children are likely to become overweight or obese adults--particularly if the children are obese during adolescence--the increase in the number of obese children may also contribute to health care expenditures when they become …

Correspondence issued by the Government Accountability Office with an abstract that begins "Since the September 11, 2001, terrorist attacks, the Department of Defense (DOD) has increased its reliance on its National Guard and reserve forces to support the Global War on Terrorism, and particularly Operation Iraqi Freedom. Congress has been interested in making improvements and enhancements to compensation and benefit programs for reserve component members. When reserve component members are activated for more than 30 days under federal authorities, they are covered under TRICARE, DOD's health care system. While reserve component members are automatically covered by TRICARE when activated, their spouses and other dependents have the option of using either TRICARE or their private health insurance. However, our prior work found that dependents of reserve component members who had dropped their private health insurance reported problems accessing the TRICARE system--such as difficulty finding a health care provider, establishing eligibility, understanding TRICARE benefits, and knowing where to go when questions and problems arise. In addition, maintaining continuity of care with the same health care providers, especially for dependents with chronic medical conditions, may be problematic after switching to TRICARE. To address these concerns, some legislative proposals would give reserve component members …

Testimony issued by the Government Accountability Office with an abstract that begins "The 1988 Exon-Florio amendment to the Defense Production Act authorizes the President to suspend or prohibit foreign acquisitions of U.S. companies that may harm national security, an action the President has taken only once. Implementing Exon-Florio can pose a significant challenge because of the need to weigh security concerns against U.S. open investment policy--which requires equal treatment of foreign and domestic investors. Exon-Florio's investigative authority was delegated to the Committee on Foreign Investment in the United States (Committee)--an interagency committee established in 1975 to monitor and coordinate U.S. policy on foreign investments. In September 2002, GAO reported on weaknesses in the Committee's implementation of Exon-Florio. This review further examined the Committee's implementation of Exon-Florio."

Testimony issued by the Government Accountability Office with an abstract that begins "Since 1990 the Department of Defense's (DOD) supply chain management processes have been on GAO's list of high-risk areas needing urgent attention and fundamental transformation to ensure that they function in the most economical, efficient, and effective manner possible. Recently in collaboration with the Office of Management and Budget (OMB), DOD developed a plan to address some of the systemic weaknesses as a first step toward removing supply chain management from the list. DOD's plan focuses on three areas for improvement: accuracy of supply requirements forecasts, distribution of material, and asset visibility. GAO was asked to provide its views on (1) the importance of supply chain management in DOD, (2) why GAO listed it as a high-risk area, (3) GAO's assessment of DOD's plan to improve supply chain processes, and (4) GAO's plans to follow up on DOD's efforts. This testimony contains GAO's views on what remains to be done to improve DOD's supply chain management and bring about lasting solutions. Continued efforts to complete and implement DOD's plan as well as continued oversight by Congress are essential."

Other written product issued by the Government Accountability Office with an abstract that begins "A recent GAO report assessed the thoroughness of the process used by the Department of Housing and Urban Development (HUD) to resolve complaints of housing discrimination (GAO-06-79). As part of that study, GAO did a telephone survey, which is reproduced here, of a sample of complainants in housing discrimination cases that were investigated and closed by HUD's Office of Fair Housing and Equal Opportunity (FHEO) and state and local Fair Housing Assistance Program (FHAP) agencies from July 1 through December 31, 2004. A survey research firm under contract to GAO interviewed a random sample of 575 complainants to determine their levels of satisfaction with the thoroughness, fairness, timeliness, and outcomes of the complaint intake and investigation process. Using HUD records, GAO mailed advance letters to and subsequently called the complainants of record in 1,517 eligible cases. The response rate was 38 percent, resulting in the 575 complete interviews. The sample was allocated proportionally across three types of case closures (administrative, conciliation without determination of cause, or a determination of no cause) and responsible agency (FHEO or FHAP). Results were weighted, or statistically adjusted, to make them …

Testimony issued by the Government Accountability Office with an abstract that begins "The disastrous hurricanes that have struck the Gulf Coast and Eastern seaboard in recent years--including Katrina, Rita, Ivan, and Isabel--have focused attention on federal flood management efforts. The National Flood Insurance Program (NFIP), established in 1968, provides property owners with some insurance coverage for flood damage. The Federal Emergency Management Agency (FEMA) within the Department of Homeland Security is responsible for managing the NFIP. This testimony offers information from past GAO work on (1) the financial structure of the NFIP; (2) why the NFIP insures properties for repetitive flood losses and the impact on NFIP resources; and (3) compliance with requirements for mandatory purchase of NFIP policies. The testimony also discusses recommendations from a report GAO is issuing today on FEMA's oversight and management of the NFIP."

Testimony issued by the Government Accountability Office with an abstract that begins "The disastrous hurricanes that have struck the Gulf Coast and Eastern seaboard in recent years--including Katrina, Rita, Ivan, and Isabel--have focused attention on federal flood management efforts. The National Flood Insurance Program (NFIP), established in 1968, provides property owners with some insurance coverage for flood damage. The Federal Emergency Management Agency (FEMA) within the Department of Homeland Security is responsible for managing the NFIP. GAO issues a report earlier this week that was mandated by the Flood Insurance Reform Act of 2004. This testimony discusses findings and recommendations from that report and information from past GAO work. Specifically, the testimony discusses (1) the statutory and regulatory limitations on coverage for homeowners under the NFIP; (2) FEMA's role in monitoring and overseeing the NFIP; (3) the status of FEMA's implementation of provisions of the Flood Insurance Reform Act of 2004. It also offers observations on broader issues facing the NFIP including its financial structure and updating flood maps."

Testimony issued by the Government Accountability Office with an abstract that begins "In January 2003, GAO designated federal real property a high-risk area and issued an update on this area in January 2005. GAO identified the government's reliance on costly leased space as one of the major reasons for the high-risk designation. Other reasons included excess and deteriorated property, unreliable real property data, and the challenges associated with protecting these assets from terrorism. This testimony discusses GAO's designation of federal real property as a high-risk area and focuses specifically on the government's reliance on costly leased space."

Correspondence issued by the Government Accountability Office with an abstract that begins "GAO reviewed the audit reports covering the financial statements of the National Woman's Relief Corps, Auxiliary to the Grand Army of the Republic, Incorporated, for fiscal years 2003 and 2002. GAO found no reportable instances of noncompliance. The audit report included the auditor's opinion that the financial statements of the corporation were presented fairly on a modified cash basis of accounting."

Correspondence issued by the Government Accountability 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 2003. 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 Government Accountability Office with an abstract that begins "GAO reviewed the audit reports covering the financial statements of the Pearl Harbor Survivors Association for the fiscal year ended September 30, 2003. GAO found no reportable instances of noncompliance. The audit report included the auditor's opinion that, with one exception, the financial statements of the corporation were presented fairly on a modified cash basis of accounting. The exception relates to the fact that the auditor was not present to observe the physical inventory count at September 30, 2003, and the corporation's records do not permit adequate retroactive tests of inventory balances. The corporation reported a prior period adjustment of $11,689 to correct for errors made in prior year's financial statements."

Correspondence issued by the Government Accountability Office with an abstract that begins "GAO reviewed the audit reports covering the financial statements of the National Music Council for Fiscal Years 1993-2001. GAO found no reportable instances of noncompliance. The audit reports included the auditors' opinions that the financial statements of the corporation were presented fairly in accordance with U.S. generally accepted accounting principles."

Correspondence issued by the Government Accountability Office with an abstract that begins "GAO reviewed the audit reports covering the financial statements of the Non Commissioned Officers Association of the United States of America, Inc., for fiscal years 2003, 2002, 2001, and 2000. GAO found no reportable instances of noncompliance. The audit report included the auditor's opinions that the financial statements of the corporation were presented fairly in accordance with generally accepted accounting principles."

Correspondence issued by the Government Accountability Office with an abstract that begins "GAO reviewed the audit reports covering the financial statements of the Reserve Officers Association of the United States for Fiscal Years 2003 and 2004. 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 U.S. generally accepted accounting principles."

Correspondence issued by the Government Accountability Office with an abstract that begins "GAO reviewed the audit reports covering the financial statements of the United States Olympic Committee for Fiscal Years 2001-2003. 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 U.S. generally accepted accounting principles."

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 "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. We have commended the progress that has been made in addressing human capital challenges in the last few years. Still, significant opportunities exist to improve strategic human capital management to respond to current and emerging 21st century challenges. A key question, for example, is how to update the federal government's classification and compensation systems to be more market-based and performance-oriented. The Administration's draft proposed "Working for America Act" is intended to ensure that agencies are equipped to better manage, develop, and reward their employees. Under this proposal, the Office of Personnel Management (OPM) is to design a new core classification and pay system, among other things. In addition, the draft proposal amends some provisions of Title 5 covering labor management relations and adverse actions and appeals. This testimony presents preliminary observations on the draft proposal; presents the principles, criteria, and processes for human capital reform; and suggests next steps for selected and targeted actions."

Correspondence issued by the Government Accountability Office with an abstract that begins "This report responds to certain requirements of the Haitian Refugee Immigration Fairness Act (HRIFA) of 1998 that authorized certain Haitian nationals and their dependents to apply to adjust their status to lawful permanent residence. Section 902(k) of the act requires the Comptroller General to report every 6 months on the number of Haitian nationals who have applied and been approved to adjust their status to lawful permanent residence. The reports are to contain a breakdown of the number of Haitians who applied and the number who were approved as asylum applicants, parolees, children without parents, orphaned children, or abandoned children; or as the eligible dependents of these applicants, including spouses, children, and unmarried sons or daughters. Reports are to be provided until all applications have been finally adjudicated. This is our thirteenth report."

Correspondence issued by the Government Accountability Office with an abstract that begins "In 1997, the Food and Drug Administration (FDA) banned the use of most proteins derived from mammals (referred to as prohibited material) in feed intended for cattle and other ruminants. The feed-ban rule is one of the primary actions taken by the federal government to protect U.S. cattle from bovine spongiform encephalopathy (BSE), commonly known as mad cow disease, which is believed to be spread through feed that contains malformed protein found in certain tissue--particularly brain and central nervous system tissue--of BSE-infected animals. Earlier this year, mad cow disease was found for the first time in a 12-year old animal born and raised in the United States. In January 2002, we reported on the effectiveness of federal actions to prevent the introduction and spread of BSE in the United States and identified a number of areas where improvements were needed to strengthen FDA's oversight of firms in the feed industry. In February 2005, we issued a follow-up report that examined the effectiveness of FDA's actions since the 2002 report to ensure industry compliance with the feed-ban rule and protect U.S. cattle from BSE. Our report concluded that while …

Correspondence issued by the Government Accountability Office with an abstract that begins "Spending on outpatient prescription drug coverage for Medicaid beneficiaries has accounted for a substantial and growing share of Medicaid program expenditures. All states and the District of Columbia have elected to include outpatient prescription drug coverage as a benefit of their Medicaid programs. Total Medicaid expenditures on outpatient prescription drugs grew from $4.6 billion (nearly 7 percent of Medicaid's total medical care expenditures) in fiscal year 1990 to $33.8 billion (13 percent of Medicaid's total medical care expenditures) in fiscal year 2003. This represented more than twice the rate of increase in total Medicaid spending from fiscal year 1990 through fiscal year 2003. Amid concerns about increasing Medicaid drug spending, focus has been drawn to the ways states pay for prescription drugs. State Medicaid programs pay pharmacies for covered outpatient prescription drugs dispensed to Medicaid beneficiaries. The Centers for Medicare & Medicaid Services (CMS)--the agency of the Department of Health and Human Services (HHS) that oversees states' Medicaid programs--sets maximum payment limits for certain drugs--federal upper limits (FUL)--and provides guidelines regarding drug payment, as defined by regulation. Within these parameters, states may determine their own drug payment methodologies. …

Correspondence issued by the Government Accountability Office with an abstract that begins "The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (MMA) added a prescription drug benefit to the Medicare program, to become effective January 1, 2006. To assist Medicare beneficiaries with their prescription drug costs until the new benefit becomes available, the MMA also required the establishment of a temporary program, the Medicare Prescription Drug Discount Card and Transitional Assistance Program, which began in June 2004. The drug card program is designed to offer Medicare beneficiaries access to discounts off the retail price of prescription drugs. All Medicare beneficiaries, except those receiving Medicaid drug coverage, are eligible to enroll in the drug card program. Certain low-income beneficiaries without other drug coverage qualify for an additional benefit, a transitional assistance (TA) subsidy, that can be applied toward the cost of drugs covered under the drug card program. The Centers for Medicare & Medicaid Services (CMS)--the agency within the Department of Health and Human Services that administers the Medicare and Medicaid programs--administers and oversees the drug card program. The drug cards themselves are offered and managed by private organizations, known as drug card sponsors. There are different types of drug …