Correspondence issued by the General Accounting Office with an abstract that begins "We have performed the procedures contained in the enclosure to this report, which we agreed to perform and with which the Inspector General (IG) concurred, solely to assist it in ascertaining whether the net excise tax revenue distributed to the Airport and Airway Trust Fund (AATF) for the fiscal year ended September 30, 2003, is supported by the underlying records. As agreed, we evaluated fiscal year 2003 activity affecting distributions to the AATF."

Correspondence issued by the General Accounting Office with an abstract that begins "The Inspector General (IG) of the Department of Transportation requested that GAO perform procedures to assist the IG's office in ascertaining whether the net excise tax revenue distributed to the Highway Trust Fund (HTF) for the fiscal year ended September 30, 2003, is supported by the underlying records. GAO evaluated fiscal year 2003 activity affecting distributions to the HTF."

Testimony issued by the General Accounting Office with an abstract that begins "Commercial aviation has been a long-standing target for terrorists. Since the tragic attacts of September 11, 2001, substantial changes have been made to enhance security--including the creation of the Transportation Security Administration (TSA) and the federalization of the passenger screener workforce. However, despite these changes, vulnerabilities in aviation security continue to exist. Accordingly, GAO was asked to describe TSA's efforts to (1) measure the effectiveness of its aviation security initiatives, (2) strengthen its passenger screening program, and (3) address additional challenges in further enhancing aviation security."

Testimony issued by the General Accounting Office with an abstract that begins "A safe and secure civil aviation system is a critical component of the nation's overall security, physical infrastructure, and economic foundation. Billions of dollars and myriad programs and policies have been devoted to achieving such a system. Although it is not fully known at this time what actually occurred or what all the weaknesses in the nation's aviation security apparatus are that contributed to the horrendous events on September 11, 2001, it is clear that serious weaknesses exist in our aviation security system and that their impact can be far more devastating than previously imagined. As reported last year, GAO's review of the Federal Aviation Administration's (FAA) oversight of air traffic control (ATC) computer systems showed that FAA had not followed some critical aspects of its own security requirements. Specifically, FAA had not ensured that ATC buildings and facilities were secure, that the systems themselves were protected, and that the contractors who access these systems had undergone background checks. Controls for limiting access to secure areas, including aircraft, have not always worked as intended. GAO's special agents used fictitious law enforcement badges and credentials to gain access to …

Testimony issued by the General Accounting Office with an abstract that begins "A safe and secure civil aviation system is critical to the nation's security, physical infrastructure, and economy. Billions of dollars and myriad programs and policies have been devoted to achieving such a system. Although it is not fully known at this time what actually occurred or what all the weaknesses in the nation's aviation security apparatus are that contributed to the horrendous events on September 11, 2001, it is clear that serious weaknesses exist in our aviation security system and that their impact can be far more devastating than previously imagined. As reported last year, GAO's review of the Federal Aviation Administration's (FAA) oversight of air traffic control (ATC) computer systems showed that FAA had not followed some critical aspects of its own security requirements. Specifically, FAA had not ensured that ATC buildings and facilities were secure, that the systems themselves were protected, and that the contractors who use these systems had undergone background checks. Controls for limiting access to secure areas, including aircraft, have not always worked as intended. GAO's special agents used fictitious law enforcement badges and credentials to gain access to secure areas, bypass security …

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the Bureau of Prisons to determine whether it had made overpayments to contractors. During fiscal year 2001, the Bureau of Prisons had 24 open construction contracts that totaled about $1.9 billion. In addition to general disbursement controls, GAO found internal controls specific to construction contracts in which both the project representative and the contracting officer must approve each monthly progress payment invoice. GAO sampled 27 payments on five construction contracts to determine if construction contract payment controls were properly designed, in place, and operating to prevent or detect overpayments. GAO found that the internal controls were in place and operating and construction contract payment amounts were correct, or, if errors occurred, they were detected and corrected promptly as a normal part of the payment system. A few minor clerical errors were subsequently detected and corrected by the Bureau of Prisons through its own routine control procedures before GAO made its review. GAO concludes that the risk of undetected construction contractor overpayments at the Bureau of Prisons appears to be small."

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the progress made by states and localities as they develop new financing, service-delivery, and accountability strategies for child welfare programs, focusing on: (1) the financial and service-delivery changes states and localities have made in their managed care initiatives; (2) how they are measuring the initiatives' outcomes; and (3) what is known about the effect of these changes on children and families."

Correspondence issued by the General Accounting Office with an abstract that begins "In July 2000, the Department of Defense published a proposed revision of its guidelines for developing profit objectives used in contract negotiations. The existing profit policy guidelines address investment in facilities and equipment, performance risk, and contract type risk. For each profit factor, the contracting officer determines an appropriate value and applies it against a specified base to develop the profit objectives. The proposed revision would make the following changes to the profit guidelines: (1) include a fourth element--cost efficiency, that would allow the contracting officer to reward cost reduction efforts; (2) eliminate profit on investment in buildings and reduce the amount of profit derived from equipment investment; (3) increase the amount of profit based on performance risk; and (4) add general and administrative expenses to the cost base used to compute profit for performance risk, contract type risk, and cost efficiency. The decrease in profit for investment in facilities would be offset by the increased profit derived from performance risk and the inclusion of general and administrative expenses."

Testimony issued by the General Accounting Office with an abstract that begins "The terrorist attacks on the World Trade Center and the Pentagon on Sept. 11 killed thousands of Americans and foreign nationals. The economic toll will also be enormous. Countless jobs and retirement funds are now at risk. Estimates of the losses to the airline industry alone have ranged from $4 billion, according to many analysts, to more than $20 billion, according to some airline officials. Congress has already appropriated $40 billion for emergency responses, including increased transportation security, and Congress is considering financial assistance to the airline industry. GAO believes that the government needs to clearly define the nature of the problem--separating short-term needs from long-term challenges, industry wants from real needs. Although all airlines now face major financial challenges, government assistance cannot overcome the financial difficulty that confronted several carriers before the events of September 11. The government has a range of options to assist the airline industry, from loans and loan guarantees to tax subsidies. The choice and design of the assistance is critical to targeting federal aid to the immediate problems, spreading responsibility among all industry stakeholders, and ensuring accountability to Congress and the American …

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the Army Corps of Engineers' Comprehensive Everglades Restoration Plan, focusing on: (1) the role of the Corps' Plan in addressing the major water quality concerns in Florida's ecosystem; and (2) modifications that may be needed as the Corps implements the Plan after it has been authorized by Congress."

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the importance of congressional oversight and the challenges that face the 21st century."

Correspondence issued by the General Accounting Office with an abstract that begins "Pursuant to a legislative requirement, GAO reviewed the District of Columbia (DC) Courts' payment processing procedures for defender services."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO concludes that the V-22 program is not ready for full-rate production. This conclusion is based on two factors. First, GAO's "best practices" work has identified practices used by successful commercial and defense programs to develop and produce quality products in significantly less time and at lower costs. GAO reviews of major weapons systems have shown that failure to follow these practices results in cost increases, schedule delays, and performance problems. Second, GAO analyzed Department of Defense (DOD) assessments and data on the V-22 program and interviewed DOD officials. As a result of GAO's findings, DOD postponed the full-rate production of the V-22 aircraft until the risks have been mitigated."

Correspondence issued by the General Accounting Office with an abstract that begins "For several years, GAO has reviewed the Department of Defense's (DOD) efforts to strategically plan for the nation's defense needs and prepare related budgets. In particular, GAO evaluated DOD's methodology for conducting the 1993 Bottom-Up Review and the 1997 Quadrennial Defense Review (QDR), and its preparation of several Future Years Defense Programs (FYDP). As DOD began a new effort to review its strategic priorities, GAO shared some observations on the importance of (1) using realistic assumptions and integrated analyses to reach force structure and modernization decisions, (2) preparing FYDPs that clearly link strategy and resources, and (3) ensuring DOD's review efforts carefully scrutinize opportunities to reduce support infrastructure and improve business processes."

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed financial management issues at the Department of Defense (DOD)."

Testimony issued by the General Accounting Office with an abstract that begins "DOE spends more money on contracts than any other civilian federal agency because it relies primarily on contractors to operate its sites and carry out its diverse missions. These missions include maintaining the nuclear weapons stockpile, cleaning up radioactive and hazardous waste, and supporting basic energy and science research activities. For fiscal year 2001, DOE spent about 90 percent of its total annual budget, or about $18.2 billion, on contracts. Of that amount, DOE spent about $16.2 billion on contracts to manage or operate 28 major DOE sites. For over a decade, GAO, DOE's Office of Inspector General, and others have identified problems with DOE's contracting practices and the performance of its contractors. Projects were late or never finished; project costs escalated by millions and sometimes billions of dollars; and environmental conditions at the sites did not significantly improve. At the same time, contractors were earning a substantial portion of the profit (fee) available under the contract. Because of these problems, since 1990 we have designated DOE contract management as a high-risk area vulnerable to fraud, waste, abuse, and mismanagement. To address these and other problems, DOE began …

Testimony issued by the General Accounting Office with an abstract that begins "The Heavily Indebted Poor Countries (HIPC) Initiative, established in 1996, is a bilateral and multilateral effort to provide debt relief to poor countries to help them achieve economic growth and debt sustainability. Multilateral creditors are having difficulty financing their share of the initiative, even with assistance from donors. Under the existing initiative, many countries are unlikely to achieve their debt relief targets, primarily because their export earnings are likely to be significantly less than projected by the World Bank and International Monetary Fund (IMF). In a recently issued report, GAO assessed (1) the projected multilateral development banks' funding shortfall for the existing initiative and (2) the amount of funding, including development assistance, needed to help countries achieve economic growth and debt relief targets. The Treasury, World Bank, and African Development Bank commented that historical export growth rates are not good predictors of the future because significant structural changes are under way in many countries that could lead to greater growth. We consider these historical rates to be a more realistic gauge of future growth because of these countries' reliance on highly volatile primary commodities and other vulnerabilities such …

Correspondence issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO reviewed the District of Columbia's (D.C.) Adolescent Acquired Immunodeficiency Syndrome (AIDS) Prevention Program, focusing on: (1) statistics on the specific schools that are participating in this program; (2) how the schools were selected to participate in the program; (3) the source and amount of funding identified in the D.C. government budget; (4) statistics on sexually transmitted diseases, human immunodeficiency virus (HIV)/AIDS, and pregnancies among D.C. public school students; (5) the policies that govern the distribution of all forms of contraception devices to students in the D.C. Public Schools; and (6) information on policies governing sex education in the D.C. Public Schools."

Testimony issued by the General Accounting Office with an abstract that begins "Financial management problems at the Department of Defense (DOD) are complex, long-standing, and deeply rooted throughout its business operations. DOD's financial management deficiencies represent the single largest obstacle to achieving an unqualified opinion on the U.S. government's consolidated financial statements. So far, none of the military services or major DOD components have passed the test of an independent financial audit because of pervasive weaknesses in financial management systems, operations, and controls. These problems go back decades, and earlier attempts at reform have been unsuccessful. DOD continues to rely on a far-flung, complex network of finance, logistics, personnel, acquisition, and other management information systems for financial data to support day-to-day management and decision-making. This network has evolved into an overly complex and error-prone operation with (1) little standardization across DOD components; (2) multiple systems performing the same tasks; (3) the same data stored in multiple systems; (4) manual data entry into multiple systems; and (5) a large number of data translations and interfaces, which combine to exacerbate problems with data integrity. Many of the elements that are crucial to financial management reform and business process transformation--particularly those that rely …

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the Department of Defense's (DOD) backlog of overdue personnel security reinvestigations, focusing on: (1) how DOD estimates estimates the backlog; (2) the soundness of DOD's backlog estimates; and (3) DOD's plans to address the backlog problem."

Other written product issued by the General Accounting Office with an abstract that begins "Pursuant to a legislative requirement, GAO reviewed the Federal Communications Commission's (FCC) new rule on installment payment financing for Personal Communications Services (PCS) licensees. GAO noted that: (1) the rule would modify the FCC's rules that will apply to Auction No. 35, the next broadband PCS C and F block auction, as well as any subsequent auctions of C and F licenses, including any spectrum made available or reclaimed from bankruptcy proceedings in the future."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the Foundation of the Federal Bar Association's financial statement audit reports to determine whether it complied with the financial reporting requirements of the law. GAO found no reportable instances of noncompliance, and the audit report included the auditors' opinions that the corporation's financial statements were presented fairly in accordance with generally accepted accounting principles."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit report covering the financial statements for the Military Order of the Purple Heart of the United States of America, Incorporated, for fiscal year 2001. GAO found no reportable instances of noncompliance. The audit report 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 General Accounting Office with an abstract that begins "GAO reviewed the audit report covering the financial statements of the National Conference on Citizenship, for fiscal years 2001 and 2002. GAO found no reportable instances of noncompliance. The audit report included the auditors' opinions that the financial statements of the corporation were presented fairly in accordance with generally accepted accounting principles."