Correspondence issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO reviewed the Federal Aviation Administration's (FAA) report to Congress recommending that it award a contract to an alternate contractor for the development of its Alaska National Airspace System Interfacility Communications System, focusing on whether the findings were properly supported. FAA's report compared the alternate contractor's costs to the costs of two other commercial telecommunications providers."

Correspondence issued by the Government Accountability Office with an abstract that begins "Federal agencies rely on a multisector workforce composed of federal employees and contractor personnel to perform services as they carry out their missions. Determining whether to obtain services through insourcing with current or new federal employees, outsourcing with private sector contractors, or cosourcing with a combination of the two is an important economic and strategic decision critical to the federal government's effective and efficient use of taxpayer dollars. The executive branch has encouraged federal agencies since the mid-1950s to obtain commercially available services from the private sector when outsourcing is cost-effective. In the last 5 fiscal years, civilian agencies have on average annually obligated about $100 billion to obtain a range of services from contractors. However, in March 2009, the President issued a memorandum on government contracting that, among other matters, expressed concern about the federal workforce as to whether agencies have become overreliant on contractors and have appropriately outsourced services. In particular, the President noted that the line between inherently governmental functions--those that must be performed by federal employees--and commercial activities that may be contracted for has been blurred. In the memorandum, the President directed the Office …

A letter report issued by the Government Accountability Office with an abstract that begins "The tax credit for qualified research expenses provides significant subsidies to encourage business investment in research intended to foster innovation and promote long-term economic growth. Generally the credit provides a subsidy for research spending in excess of a base amount but concerns have been raised about its design and administrability. Government Accountability Office (GAO) was asked to describe the credit's use, determine whether it could be redesigned to improve the incentive to do new research, and assess whether recordkeeping and other compliance costs could be reduced. GAO analyzed alternative credit designs using a panel of corporate tax returns and assessed administrability by interviewing Internal Revenue Service (IRS) and taxpayer representatives."

Correspondence issued by the General Accounting Office with an abstract that begins "This letter responds to a request by the Chairman, Senate Committee on Governmental Affairs, for GAO's views on the need for postal reform and is based upon prior testimonies related to this issue. Since the Postal Service's transformation efforts and financial outlook had been placed on GAO's High-Risk List in April 2001, the Comptroller General has testified on several occasions about the governance, financial, operational, and human capital challenges that threaten the Service's ability to carry out its mission. If not effectively addressed in a timely manner, these challenges serve to threaten the Service's ability to remain self-supporting while providing affordable, high-quality, and universal postal services to all Americans."

A letter report issued by the Government Accountability Office with an abstract that begins "The total number of aliens detained per year by the Department of Homeland Security's (DHS) U.S. Immigration and Customs Enforcement (ICE) increased from about 95,000 in fiscal year 2001 to 283,000 in 2006. The care and treatment of these detained aliens is a significant challenge to ICE. GAO was asked to review ICE's implementation of its detention standards for aliens in its custody. GAO reviewed (1) detention facilities' compliance with ICE's detention standards, (2) ICE's compliance review process, and (3) how detainee complaints regarding conditions of confinement are handled. To conduct its work, GAO reviewed DHS documents, interviewed program officials, and visited 23 detention facilities of varying size, type, and geographic location."

Correspondence issued by the Government Accountability Office with an abstract that begins "This report documents the information we provided to Congress in a briefing on February 2, 2006, in response to a request concerning the Department of Veterans Affairs (VA) internal budget formulation process. This includes information that VA develops for its budget submission to the Office of Management and Budget (OMB), but it does not include information on subsequent interactions that occur between VA and OMB. We will do additional work to incorporate information from OMB and complete our analysis in a report to be issued at a later date. Congress requested information on VA's budget formulation process because of its interest in ensuring that VA's budget forecasts are accurate and based on valid patient estimates. In response to the request for information on VA's internal budget formulation process, this report provides the following for fiscal years 2005 and 2006: (1) a description of VA's process for developing its budget submission to OMB for its medical programs, and the role of VA's actuarial model; (2) a description of the medical program activities cited by VA as needing additional funding, and how VA identified these activities; and (3) key factors …

Correspondence issued by the Government Accountability Office with an abstract that begins "The Secretary of the 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 no longer be …

Correspondence issued by the General Accounting Office with an abstract that begins "Efforts by the National Association of Insurance Commissioners (NAIC) to promote sound and uniform regulatory processes across the states are being put to the test as pressure builds from both the 1999 Gramm-Leach-Bliley Act and competitive forces for more efficient and streamlined insurance regulatory processes. One factor affecting the ultimate success of these efforts is the level of confidence state regulators will have in their counterparts' willingness and ability to adequately obtain, assess, and validate information provided by industry applicants in making regulatory decisions. Each state will be required to rely on the actions of regulators in other states to a greater degree than ever before. Whether regulators ultimately achieve uniformity in some areas or even attain reciprocity, continuing weaknesses in some states' regulatory framework can undermine the system. NAIC and state regulators believe that the development of more uniform and streamlined methods for obtaining licensing approval on individuals, products, and insurance companies in multiple states can enhance the ability of insurers to compete with other financial service entities while at the same time maintaining or improving the quality of insurance regulation. Both the timely completion and degree …

Correspondence issued by the Government Accountability Office with an abstract that begins "On March 9, 2006, we testified before Congress at a hearing entitled, "Reporting Improper Payments: A Report Card on Agencies' Progress." At the hearing, we discussed our findings on federal agencies' challenges in meeting the requirements of the Improper Payments Information Act (IPIA) of 2002 based on our review of agencies' fiscal year 2005 performance and accountability reports (PAR) and annual reports. We were asked to provide answers to the following follow-up questions relating to our March 9, 2006, testimony: (1) What concerns does GAO have regarding not only DHS' inability to comply with the Improper Payments Information Act; but on a greater scale with their overall financial management? (2) About which Agencies that reported in their fiscal year 2005 Performance and Accountability Report that they had no programs susceptible to significant improper payments does GAO have concerns about? (3) Should "unavoidable overpayment" statistics at the Social Security Administration (SSA) be reported to the Office of Management and Budget, and if so why would this be important, and how could the Social Security Administration implement such a process? (4) What concerns does GAO have with the Agency for …

A letter report issued by the Government Accountability Office with an abstract that begins "In the 1990s, the United States operated a program in Colombia and Peru called Air Bridge Denial (ABD). The ABD program targeted drug traffickers that transport illicit drugs through the air by forcing down suspicious aircraft, using lethal force if necessary. The program was suspended in April 2001 when a legitimate civilian aircraft was shot down in Peru and two U.S. citizens were killed. The program was restarted in Colombia in August 2003 after additional safeguards were established. To date, the United States has provided about $68 million in support and plans to provide about $26 million in fiscal year 2006. We examined whether the ABD program's new safeguards were being implemented and its progress in attaining U.S. and Colombian objectives."

A letter report issued by the Government Accountability Office with an abstract that begins "China's 2001 accession to the World Trade Organization (WTO) required China to reform its economy and trade practices. As part of ongoing work, GAO reviewed how the U.S. Trade Representative (USTR) and the Departments of Commerce, Agriculture, and State pursued China's WTO compliance in 2003. Specifically, this report (1) discusses the scope and disposition of China's compliance problems, (2) reviews the U.S. government's bilateral and multilateral approaches for resolving these problems, (3) assesses the key agencies' strategies and plans for ensuring compliance, and (4) assesses how the agencies have adapted their staff resources to conduct compliance activities."

A letter report issued by the Government Accountability Office with an abstract that begins "The safety of the nation's flying public depends, in large part, on the aviation industry's compliance with safety regulations and the Federal Aviation Administration's (FAA) enforcement of those regulations when violations occur. FAA attempts to gain the industry's compliance through enforcement tools, including levying fines and suspending or revoking operating certificates, and partnership programs that allow participating companies or individuals to self-report violations of safety regulations and mitigate or avoid fines or other legal actions. GAO was asked to assess how FAA uses its enforcement options to address noncompliance and what management controls are in place to ensure that enforcement efforts and partnership programs result in compliance with aviation safety regulations."

A letter report issued by the Government Accountability Office with an abstract that begins "Many of our nation's military and civilian personnel depend on Department of Defense (DOD) schools to meet their children's educational needs. These schools provide a range of educational services including programs for students with disabilities and those who struggle to read, some of whom may have a condition referred to as dyslexia. To determine how DOD supports students with dyslexia and how it used $3.2 million in funds designated to support them, GAO was asked to examine: (1) what professional development DOD provides its staff to support students with dyslexia and how the fiscal year 2004-to-2006 funds designated for this purpose were used, (2) what identification and instructional services DOD provides to students who may have dyslexia, and (3) how DOD assesses the academic achievement of students with disabilities, including dyslexia. To address these objectives, GAO conducted a survey of all school principals and interviewed agency officials, school personnel, and parents in six school districts."

A letter report issued by the Government Accountability Office with an abstract that begins "Hurricane Katrina's storm surge and floodwaters breached levees and floodwalls causing billions of dollars of property damage, and more than 1,300 deaths. Under the Comptroller General's authority to conduct reviews on his own initiative, GAO reviewed the Army Corps of Engineers (Corps) (1) progress in repairing damage to hurricane protection projects by June 1, 2006; (2) plans and estimated costs to make other repairs and complete five existing hurricane protection projects; and (3) plans and estimated costs to add enhancements and strengthen hurricane protection for the region. GAO reviewed related laws and regulations, Corps planning documents and repair tracking reports, observed ongoing repair work, and met with key agency officials and other stakeholders."

A letter report issued by the Government Accountability Office with an abstract that begins "Training flight and cabin crew members to handle potential threats against domestic aircraft is an important element in securing our nation's aviation system. The responsibility for ensuring that crew members are prepared to handle these threats is a shared responsibility between the private sector--air carriers--and the federal government, primarily the Transportation Security Administration (TSA). This report addresses (1) actions TSA has taken to develop guidance and standards for flight and cabin crew member security training and to measure the effectiveness of the training, (2) how TSA ensures domestic air carriers comply with the training guidance and standards, and (3) efforts TSA has taken to develop and assess the effectiveness of its voluntary self-defense training program."

A letter report issued by the General Accounting Office with an abstract that begins "The Balanced Budget Act of 1997 significantly changed Medicare's home health care payments to home health agencies (HHAs). Under a prospective payment system (PPS), HHAs are paid a fixed amount, adjusted for beneficiary care needs, for providing up to 60 days of care---termed a "home health episode." The act also imposed new interim payment limits to moderate spending until the PPS could be implemented. Although PPS was designed to lower Medicare spending below what it was under the interim system, GAO found that Medicare's payments for full home health care episodes were 35 percent higher than estimated in the first six months of 2001. These disparities indicate that Medicare's PPS overpays for services actually provided, although some HHAs facing extraordinary costs not accounted for by the payment system may be financially disadvantaged."

A letter report issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO provided information on the Department of Defense's (DOD) progress on reducing its headquarters staff, focusing on DOD efforts to: (1) implement the revised management headquarters directive and provide a more accurate report on the number of personnel in headquarters activities; and (2) reduce positions in headquarters and achieve the reductions mandated by the National Defense Authorization Act for Fiscal Year 2000."

A letter report issued by the General Accounting Office with an abstract that begins "The financial collapse of large firms and the effects on workers and retirees has raised questions about retirement funds being invested in employer securities and the laws governing such investments. Pensions are important source of income of many retirees, and the federal government has encouraged employers to sponsor and maintain pension and savings plans for their employees. The continued growth in these plans and their vulnerabilities has caused Congress to focus on issues related to participants investing in employer securities through employer-sponsored retirement plans. GAO's analysis of the 1998 plan data for the Fortune 1,000 firms showed that 550 of those companies held employer securities in their defined benefit plans or defined contribution plans, covering 13 million participants. Investment in employer securities through employer-sponsored retirement plans can present significant risks for employees. If the employees' retirement savings is largely in employer securities in these plans, employees risk losing not only their jobs should the company go out of business, but also a significant portion of their savings. Even if employers do not declare bankruptcy, employees are still subject to the dual risk of loss of job …

Correspondence issued by the General Accounting Office with an abstract that begins "Concerns have been raised about the use of unreconciled activity address codes to requisition new and excess government property. The Department of Defense's (DOD) regulation 4000.25-6-M requires that all military services and DOD activities reconcile the activity codes to the Defense Automatic Addressing System Center's master file. Such reconciliations could prevent unauthorized personnel from requesting and receiving government property. GAO found, however, that many military service points failed to comply with DOD's regulation. Most indicated that they were unaware of the requirement. As a result of this, 27,879 activity codes appeared either in the agency record but not the Addressing System Center's master file or in the Center's file but not the agency record. In addition, agencies that have their own internal activity code files do not routinely reconcile to the master file. This failure resulted in 97,450 activity codes being identified as questionable. In both situations, inventory management is vulnerable to waste, fraud, and abuse. In fact, preliminary indications are that such questionable activity codes were used to requisition millions of dollars worth of excess and new property."

A letter report issued by the General Accounting Office with an abstract that begins "To expand the capabilities of the nation's active duty forces, the Department of Defense (DOD) relies on the 1.2 million men and women of the Reserve and National Guard. Currently, reserve components constitute nearly half of the total armed forces. Although DOD requires reservists to use TRICARE DOD's health care system for their own health care, using TRICARE is an option for their dependents. Nearly 80 percent of reservists had health care coverage when they were not on active duty, according to a GAO survey. The most frequently cited sources of coverage were civilian employer health plans and spouses' employer health plans. Few dependents of mobilized reservists experience disruptions in their health coverage--primarily because most maintained civilian health coverage while reservists were mobilized. Ninety percent of the reservists with civilian health coverage maintained that coverage. The 5-year cost of the coverage options delineated in the 2002 National Defense Authorization Act range from $89 million, for expanding the transition benefit allowing mobilizations, to $19.7 billion, for continuous coverage under the Federal Employees Health Benefits Program, as estimated by the Congressional Budget Office."

Testimony issued by the Government Accountability Office with an abstract that begins "The Small Business Innovation Development Act of 1982 established the Small Business Innovation Research program (SBIR) to stimulate technological innovation, use small businesses to meet federal research and development (R&D) needs, foster and encourage participation by minority and disadvantaged persons in technological innovation, and increase private sector commercialization of innovations derived from federal R&D. Since the program's inception, GAO has conducted numerous reviews of the SBIR program. This statement summarizes GAO's past findings on the SBIR program's (1) successes and challenges, (2) data collection issues that affect program monitoring and evaluation, and (3) how agencies make eligibility determinations for the program. GAO is not making any new recommendations in this statement."

A letter report issued by the Government Accountability Office with an abstract that begins "Improvised explosive devices (IED) have been and continue to be a significant threat to U.S. forces. The Department of Defense (DOD) expanded efforts to defeat IEDs with the establishment of the Joint Improvised Explosive Device Defeat Organization (JIEDDO) in January 2006. GAO was asked to review JIEDDO's management and operations. For this second report in its series, GAO determined (1) the extent to which JIEDDO's management processes provide adequate assurances that its financial information is accurate and provides transparency over its operations and (2) the extent to which JIEDDO identifies, records, tracks, and reports numbers of all personnel, including contractors. GAO analyzed data for the first half of fiscal year 2007, which included 47 funding transactions totaling $1.34 billion for 24 initiatives to address these objectives."

A letter report issued by the Government Accountability Office with an abstract that begins "In January 2007 the President announced an initiative, referred to as Grow the Force, to increase the end strength in the Army by more than 74,000 by 2013 and the Marine Corps by 27,000 personnel by 2011 to enhance U.S. forces, reduce stress on deployable personnel, and provide necessary forces for success in the Global War on Terrorism. The Department of Defense (DOD) estimates that it will need more than $17 billion for facilities to accommodate the planned personnel increases. GAO was asked to review (1) the process the Army and Marine Corps used to develop construction projects associated with Grow the Force, (2) the extent to which the projects submitted in DOD's budget requests for fiscal years 2007 and 2008 support the initiative, and (3) whether the Army and Marine Corps plan to use temporary facilities while construction projects are completed. GAO reviewed the construction projects associated with Grow the Force in DOD's budget requests for fiscal years 2007 and 2008, reviewed stationing documents, and interviewed officials at Army and Marine Corps headquarters and six installations on the process used to develop projects. In comments …

A letter report issued by the Government Accountability Office with an abstract that begins "Issuing a U.S. visa to a foreign citizen in exchange for money or something of value is a crime that can facilitate entry into the United States of unqualified persons, including those who may wish to do our country harm. Internal controls make it difficult for an employee to commit visa malfeasance without being detected, but, despite these safeguards, visa malfeasance does occur. GAO examined (1) State's internal controls to prevent nonimmigrant visa malfeasance and if they are being implemented and (2) visa malfeasance cases from 2001-2004 and factors cited by State and the Department of Justice (Justice) that contributed to visa malfeasance and affected investigations and prosecutions."