A letter report issued by the Government Accountability Office with an abstract that begins "Congress mandated in 2000 that the Centers for Medicare & Medicaid Services (CMS) conduct the Physician Group Practice (PGP) Demonstration to test a hybrid payment methodology for physician groups that combines Medicare fee-for-service payments with new incentive payments. The 10 participants, with 200 or more physicians each, may earn annual bonus incentive payments by achieving cost savings and meeting quality targets set by CMS in the demonstration that began in April 2005. In July 2007, CMS reported that in the first performance year (PY1), 2 participants earned combined bonuses of approximately $7.4 million, and all 10 achieved most of the quality targets. Congress mandated that GAO evaluate the demonstration. GAO examined, for PY1, the programs used, whether the design was reasonable, and the potential challenges in broadening the payment approach used in the demonstration to other physician groups. To do so, GAO reviewed CMS documents, surveyed all 10 groups, and conducted interviews and site visits."

Correspondence issued by the Government Accountability Office with an abstract that begins "Since September 11, 2001, the high pace of military operations has placed significant stress on U.S. operating forces. In late 2003, the Department of Defense (DOD) reported that several studies had found that tens of thousands of military personnel were performing tasks that were not military essential and that these tasks could be performed more cost effectively by civilian or private-sector contract employees. To address this matter, DOD, in fiscal year 2004, began a multiyear initiative to convert military positions, including military health care positions, to federal civilian or contract positions. Within DOD, the Office of the Under Secretary of Defense, Personnel and Readiness (USD, P&R), has overall responsibility for issuing guidance on manpower management, which includes guidance related to determining the least costly mix of military, civilian, and contract personnel. Additionally, the Under Secretary of Defense (Comptroller) (USD (C)) and the Director, Program Analysis and Evaluation (PA&E) play key roles in determining the costs of military, civilian, and contract personnel. For example, the USD(C) is responsible for developing the composite pay rates used in developing military and civilian personnel budgets and PA&E provides leadership in developing and …

A letter report issued by the Government Accountability Office with an abstract that begins "In fiscal year 2006, the Federal Employees' Compensation Act (FECA) program paid over $1.8 billion in wage loss compensation to federal employees who were unable to work after being injured on the job. Under the Comptroller General's authority to conduct evaluations on his own initiative, GAO examined (1) how effectively the Department of Labor's (Labor) Office of Workers' Compensation Programs (OWCP) manages the risk of improper FECA compensation payments; (2) what vulnerabilities to improper payments, if any, exist in OWCP's procedures for making FECA wage loss payments; and (3) how well OWCP ensures the recovery of identified FECA overpayments. To address these issues, GAO reviewed OWCP documents, analyzed data obtained from OWCP, reviewed a random and projectable sample of FECA claims files, visited five OWCP district offices, and interviewed OWCP headquarters and district officials."

A letter report issued by the Government Accountability Office with an abstract that begins "In carrying out its mission to ensure that securities markets are fair, orderly, and efficiently maintained, the Securities and Exchange Commission (SEC) relies extensively on computerized systems. Integrating effective information security controls into a layered control strategy is essential to ensure that SEC's financial and sensitive information are protected from inadvertent or deliberate misuse, disclosure, or destruction. As part of its audit of SEC's fiscal year 2007 financial statements, GAO assessed (1) the status of SEC's actions to correct previously reported information security weaknesses and (2) the effectiveness of SEC's controls for ensuring the confidentiality, integrity, and availability of its information systems and information. To do this, GAO examined security plans, policies, and practices; interviewed pertinent officials; and conducted tests and observations of controls in operation."

A letter report issued by the Government Accountability Office with an abstract that begins "In accordance with 36 U.S.C. 2103, GAO is responsible for conducting audits of the agencywide financial statements of the American Battle Monuments Commission (the Commission). GAO audited the financial statements of the Commission for the fiscal years ended September 30, 2007, and 2006. The audits were done to determine whether, in all material respects, (1) the Commission's financial statements were presented fairly, and (2) Commission management maintained effective internal control over financial reporting and compliance with laws and regulations. Also, GAO tested Commission management's compliance with selected laws and regulations. The Commission was created in 1923 to commemorate the sacrifices and achievements of U.S. Armed Forces where they have served overseas since April 6, 1917, and locations within the United States as directed by Congress. The Commission designs, operates, and maintains 24 American military cemeteries on foreign soil and 25 federal memorials, monuments, and markers, 22 of which are on foreign soil, that were financed from appropriated funds. The Commission was also responsible for designing and constructing the national World War II Memorial on the Capitol Mall in Washington, D.C., and for maintaining seven nonfederal memorials …

Correspondence issued by the Government Accountability Office with an abstract that begins "Federal laws and regulations require that safety-related transportation professionals undergo screening to ensure that they can safely perform their jobs. Medical certification and background checks of selected pilots, vessel masters, and commercial drivers are part of the requirements for licensing these workers. Certification or licensing also includes testing workers' knowledge and skills required for the jobs. These checks are critical because physically or mentally unfit transportation workers pose a danger to themselves and to the public. Because of concerns raised by recent investigations of the reliability of pilot medical certifications, Congress asked us to first describe the requirements for medical and background checks for selected transportation workers. Accordingly, we addressed the following questions for (1) medical certification and (2) background checks: What are the regulations governing pilots, vessel masters, and commercial drivers and what role do government entities have in completing the certifications and background checks? A second report, which will be issued mid-2008, will provide information about the steps that the Federal Aviation Administration (FAA) takes to check the accuracy of pilot medical certificates. Federal regulations require that pilots have both pilot certificates and medical certificates prior …

A letter report issued by the Government Accountability Office with an abstract that begins "The Department of State's (State) Antiterrorism Assistance (ATA) program's objectives are to provide partner nations with counterterrorism training and equipment, improve bilateral ties, and increase respect for human rights. State's Office of the Coordinator for Counterterrorism (S/CT) provides policy guidance and its Bureau of Diplomatic Security, Office of Antiterrorism Assistance, (DS/T/ATA) manages program operations. GAO assessed (1) State's guidance for determining ATA priorities, (2) how State coordinates ATA with other counterterrorism programs, (3) the extent State established ATA program goals and measures, and (4) State's reporting on U.S. international counterterrorism assistance. To address these objectives, GAO reviewed State documents and met with cognizant officials in Washington, D.C., and four ATA program partner nations."

Testimony issued by the Government Accountability Office with an abstract that begins "The nation has reached a critical juncture with its current surface transportation policies and programs. Demand has outpaced the capacity of the system, resulting in increased congestion. In addition, without significant changes in funding mechanisms, revenue sources, or planned spending, the Highway Trust Fund--the major source of federal highway and transit funding--is projected to incur significant deficits in the years ahead. Furthermore, the nation is on a fiscally unsustainable path. Recognizing many of these challenges and the importance of the transportation system to the nation, Congress established The National Surface Transportation Policy and Revenue Study Commission (Commission) to examine current and future needs of the system and recommend needed changes to the surface transportation program, among other things. The Commission issued its report in January 2008. This testimony discusses 1) principles to assess proposals for restructuring the surface transportation program and 2) GAO's preliminary observations on the Commission's recommendations. This statement is based on GAO's ongoing work for the Ranking Member of this Committee, the Chairman of the House Transportation and Infrastructure Committee, Senator DeMint, as well as a body of work GAO has completed over the past …

A letter report issued by the Government Accountability Office with an abstract that begins "Catastrophic disasters, such as Hurricane Katrina, may result in trauma and other psychological consequences for the people who experience them. The federal government provides states with funding and other support to help them prepare for and respond to disasters. Because of congressional interest in these issues, GAO examined (1) federal agencies' actions to help states prepare for the psychological consequences of catastrophic disasters and (2) states' experiences obtaining and using grants from the Crisis Counseling Assistance and Training Program (CCP) to respond to the psychological consequences of catastrophic disasters. CCP is a program of the Department of Homeland Security's (DHS) Federal Emergency Management Agency (FEMA). GAO reviewed documents and interviewed program officials from federal agencies and conducted additional work in six states with experience responding to catastrophic disasters: Florida, Louisiana, Mississippi, New York, Texas, and Washington."

A letter report issued by the Government Accountability Office with an abstract that begins "Many forms of identification (ID) that federal employees and contractors use to access government-controlled buildings and information systems can be easily forged, stolen, or altered to allow unauthorized access. In an effort to increase the quality and security of federal ID and credentialing practices, the President issued Homeland Security Presidential Directive 12 (HSPD-12) in August 2004, requiring the establishment of a governmentwide standard for secure and reliable forms of ID. The resulting standard is referred to as the personal identity verification (PIV) card. GAO was asked to determine the progress selected agencies have made in (1) implementing the capabilities of the PIV cards to enhance security and (2) achieving interoperability with other agencies. To address these objectives, GAO selected eight agencies that have a range of experience in implementing smart card-based ID systems and analyzed what actions the agencies have taken to implement PIV cards."

A letter report issued by the Government Accountability Office with an abstract that begins "To aid law enforcement efforts against financial crimes, under the Bank Secrecy Act (BSA) depository institutions must file the Treasury Department's Financial Crimes Enforcement Network's (FinCEN) currency transaction report (CTR) form on their customers' cash transactions of more than $10,000. While FinCEN's regulations allow institutions to exempt certain customers, over 15 million CTRs were filed in 2006. Public Law 109-351 directed GAO to report on (1) the usefulness of CTRs to law enforcement; (2) depository institutions' costs of meeting CTR requirements; and (3) ways to encourage use of exemptions to avoid unnecessary CTRs. Among other things, GAO obtained data from FinCEN on CTRs and exemptions from 2004 to 2006, surveyed 115 state and local law enforcement agencies and 680 depository institutions, held structured interviews with officials of federal agencies and depository institutions, and reviewed relevant laws and regulations."

A letter report issued by the Government Accountability Office with an abstract that begins "The Immigration and Nationality Act requires that most visitors and immigrants to the United States obtain a visa. Aliens unable to obtain a visa, and with a compelling humanitarian need, may apply to the Department of Homeland Security (DHS) to be granted humanitarian parole. This permits an alien to enter the United States on a temporary basis. Parole responsibility rests with DHS's Humanitarian Assistance Branch (HAB), which was transferred to the U.S. Citizenship and Immigration Services (USCIS) in August 2007. In response to congressional requesters, GAO examined (1) the characteristics of those who applied for humanitarian parole since October 1, 2001, and (2) internal controls HAB designed to adjudicate applications along with the extent to which HAB adhered to them. To conduct this work, GAO analyzed HAB documents and data, such as its protocols and database of all parole applications since October 1, 2001; interviewed HAB officials about adjudication processes; and interviewed attorneys who had helped individuals file for parole."

A letter report issued by the Government Accountability Office with an abstract that begins "The United States is at a critical juncture in addressing the demands on its transportation system, including highway infrastructure. State and local governments are looking for alternatives, including increased private sector participation. GAO was asked to review (1) the benefits, costs, and trade-offs of public-private partnerships; (2) how public officials have identified and acted to protect the public interest in these arrangements; and (3) the federal role in public-private partnerships and potential changes in this role. GAO reviewed federal legislation, interviewed federal, state, and other officials, and reviewed the experience of Australia, Canada, and Spain. GAO's work focused on highway-related public-private partnerships and did not review all forms of public-private partnerships."

A letter report issued by the Government Accountability Office with an abstract that begins "The outstanding amount of state and local government tax-exempt bonds has increased over the years. Congress is interested in whether the bonds are used for appropriate purposes since the federal government forgoes billions in tax revenues annually by excluding the bonds' interest from investors' federal gross income. Questions also exist over the bonds' borrowing costs as they can divert funds from the funded projects. This report (1) describes recent trends in tax exempt bonds, (2) provides information on the types of facilities financed with tax-exempt bonds, and (3) discusses borrowing costs considering the methods of selling bonds and compares issuance costs paid from bond proceeds for governmental and qualified private activity bonds. In addition to interviewing relevant officials, we analyzed IRS's Statistics of Income (SOI) data and data from Thomson Financial to address these objectives."

A letter report issued by the Government Accountability Office with an abstract that begins "While most young people successfully transition to adulthood, a significant number of youth are disconnected from school and employment. These youth are more likely than others to engage in crime, become incarcerated, and rely on public systems of support. Several federal agencies oversee a number of programs and grants that assist local programs in serving this population at the local level. GAO reviewed the following: (1) characteristics of locally operated programs that serve disconnected youth, (2) the key elements of locally operated programs to which directors attribute their success in reconnecting youth to education and employment, and (3) challenges involved in operating these programs and how federal agencies are helping to address these challenges. GAO interviewed officials from four federal agencies, experts, and directors of 39 local programs identified by agencies and experts as helping youth meet educational and employment goals."

Testimony issued by the Government Accountability Office with an abstract that begins "The Strategic Petroleum Reserve (SPR) was created in 1975 to help insulate the U.S. economy from oil supply disruptions and currently holds about 700 million barrels of crude oil. The Energy Policy Act of 2005 directed the Department of Energy (DOE) to increase the SPR storage capacity from 727 million barrels to 1 billion barrels, which it plans to accomplish by 2018. Since 1999, oil for the SPR has generally been obtained through the royalty-in-kind program, whereby the government receives oil instead of cash for payment of royalties on leases of federal property. The Department of Interior's Minerals Management Service (MMS) collects the royalty oil and transfers it to DOE, which then trades it for oil suitable for the SPR. As DOE begins to expand the SPR, past experiences can help inform future efforts to fill the reserve in the most cost-effective manner. In that context, GAO's testimony today will focus on: (1) factors GAO recommends DOE consider when filling the SPR, and (2) the cost-effectiveness of using oil received through the royalty-in-kind program to fill the SPR. To address these issues, GAO relied on its 2006 report …

A letter report issued by the Government Accountability Office with an abstract that begins "In 2006, the Department of Veterans Affairs (VA) paid about $3.5 billion in means-tested pension benefits to over 500,000 veterans and survivors. GAO was asked to review the management of VA pension program. This report assesses (1) the characteristics and trends in size of the current pensioner population, (2) the policies and procedures VA has in place to ensure that initial pension eligibility decisions are well managed, and (3) the procedures VA has in place to ensure that pensioners continue to receive the proper benefit payments on an ongoing basis. Our study included reviews of agency policies, procedures, and internal controls; site visits to 4 of VA's 57 regional offices and all three of its pension maintenance centers; and a selected file review of new claims at three locations."

A statement of record issued by the Government Accountability Office with an abstract that begins "In November 2006, about 18,000 undervotes were reported in Sarasota County in the race for Florida's 13th Congressional District (Florida-13). After the election results were contested in the House of Representatives, the task force unanimously voted to seek GAO's assistance in determining whether the voting systems contributed to the large undervote in Sarasota County. In October 2007, GAO presented its findings on the review of the voting systems and concluded that while prior tests and reviews provided some assurance that the voting systems performed correctly, they were not enough to provide reasonable assurance that the voting systems in Sarasota County did not contribute to the undervote. GAO proposed that a firmware verification test, a ballot test, and a calibration test be conducted. The task force requested that GAO proceed with the proposed additional tests. GAO also verified whether source code escrowed by Florida could be rebuilt into the firmware used in Sarasota County. To conduct its work, GAO conducted tests on a sample of voting systems used in Sarasota County during the 2006 general election. GAO witnessed the rebuild of the firmware from the escrowed …

Correspondence issued by the Government Accountability Office with an abstract that begins "Electricity is central to the national economy and the daily lives of many Americans, powering homes, businesses, and industries. Today, an extensive system consisting of more than 150,000 miles of high-voltage transmission lines works to provide reliable electricity service and transport electricity from power plants to consumers. Federal and state entities share responsibility for regulating the electricity system. On the federal level, the Federal Energy Regulatory Commission (FERC) regulates interstate transmission of electricity and wholesale rates, among other regulatory activities. State public utility commissions are generally responsible for regulating retail electricity sales and, in some cases, planning for new power plants and transmission lines. However, as studies have shown, growth in electricity demand has strained the nation's transmission system, resulting in less flexibility to respond to system problems and an increased risk of potential blackouts. These issues have led some to suggest that new lines or other investments in the transmission system may be required to increase capacity and accommodate growing electricity demand. Several companies have recently introduced proposals to build new high-voltage direct-current (HVDC) transmission lines. Some of these proposed lines would follow active transportation rights of …

A letter report issued by the Government Accountability Office with an abstract that begins "The Department of Defense (DOD) industry personnel security clearance program has long-standing delays and backlogs in completing clearance requests and difficulties in accurately projecting its future needs for investigations to be conducted by the Office of Personnel Management (OPM). In 2006, Congress mandated that DOD report annually on the future requirements of the program and DOD's efforts to improve it, and that GAO evaluate DOD's first report. Specifically, GAO was required to report on (1) the extent to which the report responds to the issues in the mandate, (2) the number and cost of clearance investigations and adjudications in fiscal years 2000-2006, and (3) the extent to which DOD has developed procedures to estimate future needs, plans to reduce delays and backlogs, and plans to provide funding for the program. To accomplish these objectives, GAO obtained and reviewed laws, executive orders, policies, reports, and other documents related to the security clearance process and interviewed officials from a range of government offices concerned with the clearance process."

A letter report issued by the Government Accountability Office with an abstract that begins "To help secure the nation's ports against a terrorist attack, federal regulations have required cargo and other maritime facilities to have security plans in place since July 2004. U.S Coast Guard (USCG) guidance calls for an annual inspection to ensure that plans are being followed. Federal law enacted in October 2006 required such facilities to be inspected two times a year--one of which is to be conducted unannounced. The USCG plans to conduct one announced inspection and the other as a less comprehensive unannounced "spot check." GAO examined the extent to which the USCG (1) has met inspection requirements and found facilities to be complying with their plans, (2) has determined the availability of trained personnel to meet current and future facility inspection requirements, and (3) has assessed the effectiveness of its facility inspection program and ensured that program compliance data collected and reported are reliable. GAO analyzed USCG compliance data, interviewed inspectors and other stakeholders in 7 of 35 USCG sectors of varying size, geographic location, and type of waterway."

Correspondence issued by the Government Accountability Office with an abstract that begins "The achievement of the Department of Defense's (DOD) mission is dependent in large part on the skills and expertise of its civilian workforce--which consists of almost 700,000 personnel, who develop policy, provide intelligence, manage finances, and acquire and maintain weapon systems. With more than 50 percent of its civilian personnel becoming eligible to retire in the next few years, DOD may find it difficult to fill certain mission-critical jobs with qualified personnel. Strategic workforce planning, an integral part of human capital management, helps ensure that an organization has staff with the necessary skills and competencies to accomplish its strategic goals. We have previously reported that it is critical that DOD engage in effective strategic workforce planning to ensure that its human capital reforms have maximum effectiveness and value. In 2007, we reported that strategic human capital management remained a high-risk area because the federal government now faces one of the most significant transformations to the civil service in half a century, as momentum grows toward making governmentwide changes to agency pay, classification, and performance management systems. In January 2006, the National Defense Authorization Act for Fiscal Year 20065 …

A letter report issued by the Government Accountability Office with an abstract that begins "Foreign acquisitions of U.S. companies can pose a significant challenge for the U.S. government because of the need to balance the benefits of foreign investment with national security concerns. The 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. To better understand how other countries deal with similar challenges, GAO was asked to identify how other countries address the issues that Exon-Florio is intended to address. Specifically, this report describes selected countries' (1) laws and policies enacted to regulate foreign investment to protect their national security interests and (2) implementation of those laws and policies. This report updates a 1996 GAO report that describes how four major foreign investors in the United States--France, Germany, Japan, and the United Kingdom--monitored foreign investment in their own countries to protect national security interests. It also examines foreign investment in six additional countries: Canada, China, India, the Netherlands, Russia, and the United Arab Emirates (UAE). GAO reviewed selected laws and regulations and interviewed foreign government officials and others concerning their implementation and any planned changes …

A letter report issued by the Government Accountability Office with an abstract that begins "The U.S. Department of the Interior's Bureau of Land Management (BLM), Fish and Wildlife Service, and National Park Service, and the U.S. Department of Agriculture's Forest Service manage about 628 million acres of public land, mostly in the 11 western states and Alaska. Under the Federal Land Transaction Facilitation Act (FLTFA), revenue raised from selling BLM lands is available to the agencies, primarily to acquire nonfederal land within the boundaries of land they already own--known as inholdings, which can create significant land management problems. To acquire land, the agencies can nominate parcels under state-level interagency agreements or the Secretaries can use their discretion to initiate acquisitions. FLTFA expires in 2010. GAO was asked to determine (1) FLTFA revenue generated, (2) challenges to future sales, (3) FLTFA expenditures, and (4) challenges to future acquisitions. To address these issues, GAO interviewed officials and examined the act, agency guidance, and FLTFA sale and acquisition data."