A letter report issued by the Government Accountability Office with an abstract that begins "In September 2009, the President announced a revised approach for ballistic missile defense (BMD) in Europe. The European Phased Adaptive Approach (EPAA) is designed to defend against existing and near-term ballistic missile threats and build up defenses over four phases as threats mature and new BMD technologies become available. Although the approach will include capabilities such as radars and landand sea-based BMD assets, the Department of Defense (DOD) has not yet established EPAA life-cycle costs. EPAA is DOD's first implementation of its new, regional approach to BMD. GAO was asked to evaluate DOD's plans for implementing EPAA. GAO reviewed the extent to which: (1) DOD has developed guidance and addressed management of cost and schedule for EPAA, and (2) DOD planning for EPAA is informed by operational performance data. GAO reviewed key legislation, policy and guidance, and initial plans for implementation and asset allocation."

A letter report issued by the Government Accountability Office with an abstract that begins "The interstate commercial motor carrier industry moves thousands of truckloads of goods every day, and any disruption in one truckload's delivery schedule can have a ripple effect on others. Some waiting time at shipping and receiving facilities--commonly referred to as detention time--is to be expected in this complex environment. However, excessive detention time could impact the ability of drivers to perform within federal hours of service safety regulations, which limit duty hours and are enforced by the Federal Motor Carrier Safety Administration (FMCSA). This report discusses: (1) How regularly do truck drivers experience detention time and what factors contribute to detention time? (2) How does detention time affect the commercial freight vehicle industry? (3) What federal actions, if any, could be taken to address detention time issues? GAO analyzed federal and industry studies and interviewed a nongeneralizable sample of truck drivers, as well as other industry stakeholders and FMCSA officials."

Correspondence issued by the Government Accountability Office with an abstract that begins "The Department of Defense (DOD) spends billions of dollars each year to maintain key business operations intended to support the warfighter, including systems and processes related to the management of contracts, finances, the supply chain, support infrastructure, and weapon systems acquisition. We have designated a number of these areas as high risk because of their vulnerability to fraud, waste, abuse, and mismanagement and because of opportunities to achieve greater efficiencies and free up resources for higher-priority needs. In 2005, we identified DOD's approach to business transformation as a high-risk area because (1) DOD had not established clear and specific management responsibility, accountability and control over business transformation-related activities and applicable resources; and (2) DOD lacked a clear strategic and integrated plan for business transformation with specific goals, measures and accountability mechanisms to monitor progress. Because of the complexity and magnitude of the challenges facing DOD in improving business operations, we have reported the need for a chief management officer (CMO) with significant authority and experience to focus the necessary attention and sustain progress. Both DOD and Congress have taken actions to address DOD's management of business transformation efforts. …

Correspondence issued by the Government Accountability Office with an abstract that begins "According to Department of Defense (DOD) officials, the Air Force Electronic Warfare Evaluation Simulator (the Simulator), located at Air Force Plant in Fort Worth, Texas, is an important asset for helping to protect U.S. and allied pilots and aircraft against the missile threats posed by adversaries. Most missiles use one of two electronic warfare technologies in order to pursue aircraft in flight and deliver an explosive warhead with the intent to inflict maximum damage. Small shoulder-launched missiles generally use infrared seekers that search for heat sources on an aircraft, while more sophisticated air-to-air and larger surface-to-air missiles can use radio waves and infrared seekers to determine an aircraft's location in flight. DOD continually develops and tests countermeasures to protect U.S. and allied aircraft from both types of missile threats. The Air Force Electronic Warfare Evaluation Simulator at Plant 4 is one of only two Air Force facilities of its kind that test countermeasures against heat-seeking missiles, and it is the only Air Force facility that currently houses the equipment necessary to test countermeasures against more sophisticated radio frequency surface-to-air missiles. The Simulator uses an array of computer hardware …

A letter report issued by the Government Accountability Office with an abstract that begins "The unprecedented growth at 26 military installations across the country due to the implementation of several concurrent Department of Defense (DOD) initiatives is expected to stress transportation needs for surrounding communities. The Defense Access Roads program, while small when compared to other transportation funding sources, provides a means for DOD to pay a share of the cost of highway improvements due to unusual and sudden DOD-generated activities. In response to a congressional request to review the program, GAO (1) assessed the use of the program to mitigate transportation needs and (2) identified additional steps that may be necessary to address unmet transportation needs. GAO conducted extensive interviews with 26 growth installations and visited installations and state authorities in Maryland, Texas, and Virginia to discuss transportation issues."

A letter report issued by the Government Accountability Office with an abstract that begins "In the United States, payday lending is estimated to be a slightly less than $40 billion a year industry. A payday loan is a small-dollar loan that is usually from $100 to $500 and repayable in a short term, usually 2 weeks. Consumers can pay fees of $15-20 for every $100 borrowed. In 2006 the Department of Defense (DOD) reported on predatory lending, including payday lending, and found that these loans impacted military readiness and troop morale. Concerns were raised about payday lending to federal employees in law enforcement and national security positions at four components--Customs and Border Protection (CBP), Immigration and Customs Enforcement (ICE), the Transportation Security Administration (TSA), and the Federal Bureau of Investigation (FBI). GAO examined (1) how these federal law enforcement agencies become aware of employees who are potential security risks due to financial problems, including payday lending, and (2) various alternatives to payday lending. GAO reviewed federal policies and procedures for collecting financial information and reviewed data from and interviewed representatives of the payday loan industry, depository institutions, consumer groups, nonprofits, and trade organizations."

A letter report issued by the Government Accountability Office with an abstract that begins "Road, rail, and waterway freight transportation is vital to the nation's economy. Government tax, regulatory, and infrastructure investment policies can affect the costs that shippers pass on to their customers. If government policy gives one mode a cost advantage over another, by, for example, not recouping all the costs of that mode's use of infrastructure, then shipping prices and customers' use of freight modes can be distorted, reducing the overall efficiency of the nation's economy. As requested, this report (1) describes how government policies can affect competition and efficiency within the surface freight transportation sector, (2) determines what is known about the extent to which all costs are borne by surface freight customers, and (3) discusses the use of the findings when making future surface freight transportation policy. GAO reviewed the transportation literature and analyzed financial and technical data from the Department of Transportation (DOT), the Army Corps of Engineers (Corps), and the Environmental Protection Agency to make cross-modal comparisons at a national level. Data limitations and assumptions inherent in an aggregate national comparison are noted in the report."

Testimony issued by the Government Accountability Office with an abstract that begins "Since the National Aeronautics and Space Administration (NASA) created the strategy for the Commercial Orbital Transportation Services (COTS) project in 2005, the space landscape has changed significantly--the Space Shuttle program is retiring and the Ares I will not be available--increasing the importance of the timely development of COTS vehicles. The lack of alternatives for supplying the International Space Station and launching science missions have all contributed to an increased need for the COTS vehicles. The two COTS project partners, Orbital and SpaceX, have made progress in the development of their respective vehicles; however, both providers are behind schedule. As a result, the project recently received an additional $300 million to augment development efforts with risk reduction milestones. This testimony focuses on: (1) COTS development activities, including the recent funding increase; (2) the extent to which any COTS demonstration delays have affected commercial resupply services (CRS) missions and NASA's plans for meeting the space station's cargo resupply needs; and (3) lessons learned from NASA's acquisition approach for COTS. To prepare this statement, GAO used its prior relevant work and conducted additional audit work, such as analyzing each partner's agreement …

Correspondence issued by the Government Accountability Office with an abstract that begins "Our recent reviews of U.S counternarcotics programs in Mexico and Afghanistan highlighted the need to improve the programs' performance measures to track progress. The Department of State (State) received over $1 billion in its fiscal year 2010 appropriation for international counternarcotics assistance programs. The vast majority of this funding--about 90 percent in fiscal year 2010--supports counternarcotics programs in five countries--Mexico, Afghanistan, Colombia, Peru, and Bolivia. State's Bureau of International Narcotics and Law Enforcement Affairs (INL) is primarily responsible for implementing U.S. assistance programs involving eradication of illicit crops, interdiction of drug trafficking, and drug demand reduction, which represented about 85 percent of State's counternarcotics appropriation in fiscal year 2010. INL implements a large share of its funding through contractors, primarily for aviation support for eradication and interdiction efforts. Congress asked us to review State's performance measures for its counternarcotics programs. On March 10, 2011, we briefed congressional staff on our preliminary findings in which we described State's performance management system, including State's standard indicators for measuring the performance of counternarcotics assistance in recipient countries and requirements for posts to develop project-specific performance measures. Following the briefing, in subsequent …

A letter report issued by the Government Accountability Office with an abstract that begins "Established in 1998, the Job Access and Reverse Commute program (JARC)--administered by the Federal Transit Administration (FTA)-- awards formula based grants to states and localities to provide transportation to help low-income individuals access jobs. In 2005, the Safe, Accountable, Flexible, Efficient Transportation Equity Act-A Legacy for Users (SAFETEA-LU) reauthorized this program and made changes, such as allocating funds by formula to subrecipients in three areas--large urban, small urban, and rural--through designated recipients (usually transit agencies and states). SAFETEA-LU required GAO to periodically review JARC. This third report under the mandate examines (1) the progress FTA and recipients have made in reducing the instances and amounts of funds they allowed to lapse without using them; (2) the challenges recipients have faced in implementing JARC; and (3) the tradeoffs, according to stakeholders, of proposals to revise JARC during the next surface reauthorization process. For this work, GAO reviewed FTA grant data; interviewed officials from FTA, 9 designated recipients, 10 subrecipients, and industry associations; and reviewed recent proposals to revise JARC. GAO is not making recommendations in this report. DOT officials reviewed a draft of this report and provided …

A letter report issued by the Government Accountability Office with an abstract that begins "The Department of the Treasury (Treasury), in coordination with the Office of Management and Budget (OMB), is primarily responsible for preparing the financial report of the U.S. government, which contains the consolidated financial statements of the U.S. government (CFS). Since GAO's first audit of the fiscal year 1997 CFS, certain material weaknesses in internal control and other limitations on the scope of GAO's work have prevented GAO from expressing an opinion on the CFS, exclusive of the Statement of Social Insurance (SOSI). Also, GAO was unable to express an opinion on the 2010 SOSI because of significant uncertainties primarily related to the achievement of projected reductions in Medicare cost growth reflected in the 2010 SOSI. As part of the fiscal year 2010 CFS audit, GAO identified material weaknesses and other control deficiencies in the processes used to prepare the CFS. The purpose of this report is to (1) provide details on new financial statement preparation control deficiencies GAO identified during its audit of the fiscal year 2010 CFS, (2) recommend improvements, and (3) provide the status of corrective actions taken to address GAO's recommendations in this …

A letter report issued by the Government Accountability Office with an abstract that begins "Today, and in the foreseeable future, military operations require U.S. personnel, in particular Army and Marine Corps ground forces, to communicate and interact with multinational partners and local populations. The committee report accompanying a proposed bill for the National Defense Authorization Act for Fiscal Year 2011 directed GAO to review several issues related to language and culture training for Army and Marine Corps general purpose forces. For this report, GAO evaluated (1) the extent to which the Army and Marine Corps had developed strategies with elements such as goals, funding priorities, and metrics to guide training approaches and investments that were aligned with Department of Defense (DOD) planning efforts and (2) DOD's approach for identifying training requirements for Army and Marine Corps forces that will deploy to the U.S. Central Command area of responsibility. To do so, GAO analyzed Army and Marine Corps strategies and training requirements and interviewed cognizant officials."

Correspondence issued by the Government Accountability Office with an abstract that begins "Over the last few years, the National Aeronautics and Space Administration (NASA) has increasingly relied on its authority under the Space Act of 1958 to enter into agreements, commonly referred to as Space Act agreements (SAA), to stimulate private sector development of systems capable of transporting cargo and crew to the International Space Station and to assist partner firms in developing their technologies. Reimbursable Space Act agreements involve the use of NASA's facilities, personnel, or equipment primarily for the benefit of the agreement partner. NASA undertakes reimbursable work when it has unique goods, services, or facilities which can be made available to another party in a manner that does not interfere with NASA mission requirements and is consistent with the agency's mission. According to NASA guidance, the agency generally collects full reimbursement for costs associated with a reimbursable agreement. These types of agreements are known as fully reimbursable SAAs. However, NASA can accept less than full reimbursement in certain instances, such as when the reimbursement is fair and reasonable when compared to the benefits NASA receives from the work. When NASA waives costs under a reimbursable SAA, NASA …

Correspondence issued by the Government Accountability Office with an abstract that begins "Today, GAO issued a correspondence identifying the internal controls that the National Aeronautics and Space Administration (NASA) has in place for reimbursable Space Act agreements and assessing to what extent the agency is adhering to those controls. Specifically, our review focused on NASA's internal controls related to (1) fair reimbursement from agreement partners; (2) interference between agreement partners' work and NASA's use of its facilities; and (3) alignment of agreement partners' work with NASA's mission. In that correspondence, we reported that NASA was generally adhering to its controls for entering into reimbursable Space Act agreements. In our review, however, we also found several instances in which agreements were not completely and accurately recorded in the Space Act Agreement Maker (SAAM) database. In addition, we identified one instance where NASA awarded a reimbursable agreement when similar services may have been available in the private sector. This action appears contrary to the National Space Policy and may have also been contrary to the Commercial Space Competitiveness Act. Federal government standards for internal controls state that control activities should help ensure that all transactions are completely and accurately recorded. NASA's SAAM …

Correspondence issued by the Government Accountability Office with an abstract that begins "To restore stability and liquidity to the financial system, Congress established the $700 billion Troubled Asset Relief Program (TARP) and directed the Department of the Treasury (Treasury) to use the authorities granted under TARP to, among other things, preserve homeownership and protect home values. In February 2009, Treasury announced that up to $50 billion in TARP funds had been allocated to help struggling homeowners avoid potential foreclosure. However, the number of borrowers facing potential foreclosure has remained at historically high levels. In fact, in the first 2 years of the TARP-funded Home Affordable Modification Program (HAMP), more borrowers were denied or canceled from trial loan modifications than were given permanent modifications. In three prior reports, we looked at the implementation of HAMP and made several recommendations that were intended to address the challenges that Treasury faced in implementing the program. To better understand the experience of borrowers seeking HAMP modifications, we conducted a Web-based survey of housing counselors through the National Foreclosure Mitigation Counseling Program (NFMC) to obtain the counselors' perspectives of borrowers' experiences with HAMP. NFMC is administered by NeighborWorks America and funds approximately 130 grantees and …

A letter report issued by the Government Accountability Office with an abstract that begins "Cyclone Nargis hit Burma's impoverished Irrawaddy Delta on May 2, 2008, leaving nearly 140,000 people dead or missing and severely affecting about 2.4 million others, according to the UN. The Burmese military government initially blocked most access to the affected region; however, amid international pressure, it slowly began allowing international aid workers entry into the region. Since 1997, the United States has imposed sanctions to prohibit, among other things, the exportation of financial services to Burma and transactions with Burmese officials. In response to a congressional mandate, GAO (1) described the assistance UN and U.S. agencies have provided in response to Cyclone Nargis, (2) assessed USAID actions to help ensure funds are used as intended and do not benefit sanctioned entities, and (3) described the challenges responders experienced and the lessons learned. GAO reviewed financial and program documents; interviewed U.S., UN, and nongovernmental organization (NGO) officials; and traveled to Thailand and Burma."

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony discusses our past work examining the Department of Homeland Security's (DHS) progress and efforts in planning, developing, and deploying its global nuclear detection architecture (GNDA). The overall mission of the GNDA is to use an integrated system of radiation detection equipment and interdiction activities to combat nuclear smuggling in foreign countries, at the U.S. border, and inside the United States. Terrorists smuggling nuclear or radiological material into the United States could use these materials to make an improvised nuclear device or a radiological dispersal device (also called a "dirty bomb"). The detonation of a nuclear device in an urban setting could cause hundreds of thousands of deaths and devastate buildings and physical infrastructure for miles. While not as damaging, a radiological dispersal device could nonetheless cause hundreds of millions of dollars in socioeconomic costs as a large part of a city would have to be evacuated--and possibly remain inaccessible--until an extensive radiological decontamination effort was completed. Accordingly, the GNDA remains our country's principal strategy in protecting the homeland from the consequences of nuclear terrorism. The GNDA is a multi-departmental effort coordinated by DHS's Domestic Nuclear Detection …

Testimony issued by the Government Accountability Office with an abstract that begins "Increasing computer interconnectivity, such as the growth of the Internet, has revolutionized the way our government, our nation, and much of the world communicate and conduct business. However, this widespread interconnectivity poses significant risks to the government's and the nation's computer systems, and to the critical infrastructures they support. These critical infrastructures include systems and assets--both physical and virtual--that are essential to the nation's security, economic prosperity, and public health, such as financial institutions, telecommunications networks, and energy production and transmission facilities. Because most of these infrastructures are owned by the private sector, establishing effective public-private partnerships is essential to securing them from pervasive cyber-based threats. Federal law and policy call for federal entities, such as the Department of Homeland Security (DHS), to work with private-sector partners to enhance the physical and cyber security of these critical infrastructures. GAO is providing a statement describing (1) cyber threats facing cyber-reliant critical infrastructures; (2) recent actions the federal government has taken, in partnership with the private sector, to identify and protect cyber-reliant critical infrastructures; and (3) ongoing challenges to protecting these infrastructures. In preparing this statement, GAO relied on its …

A letter report issued by the Government Accountability Office with an abstract that begins "To assess quality of life and identify areas for improvement, the Air Force conducts periodic surveys of its airmen. Recent surveys indicted that many of them were not satisfied with the quality, variety, and availability of food at Air Force bases. As a result, the Air Force implemented an initiative in 2010--the Food Transformation Initiative--to improve on-base food services. The Air Force piloted the initiative at six installations with a $10.3 million contract awarded in August 2010 and plans to eventually expand the initiative to other installations in the United States. The Senate and House Armed Services Committees directed GAO to undertake a comprehensive review of the initiative. GAO reviewed (1) the initiative's objectives and performance measures, (2) implementation progress, (3) the initiative's impact on food service workers at the pilot installations, and (4) alternative approaches the Air Force considered. GAO reviewed documentation on the initiative, interviewed Air Force and contractor officials, and visited four of the six pilot installations."

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony discusses issues related to possible changes to the Federal Employees' Compensation Act (FECA) program, a topic that we have reported on in the past. At the end of chargeback year 2010, the FECA program, administered by the Department of Labor (Labor) had paid more than $1.88 billion in wage-loss compensation, impairment, and death benefits, and another $898.1 million for medical and rehabilitation services and supplies. Currently, FECA benefits are paid to federal employees who are unable to work because of injuries sustained while performing their federal duties, including those who are at or older than retirement age. Concerns have been raised that federal employees on FECA receive benefits that could be more generous than under the traditional federal retirement system and that the program may have unintended incentives for beneficiaries to remain on the FECA program beyond the traditional retirement age. Over the past 30 years, there have been various proposals to change the FECA program to address this concern. Recent policy proposals to change the way FECA is administered for older beneficiaries share characteristics with past proposals we have discussed in prior work. In August …

A letter report issued by the Government Accountability Office with an abstract that begins "Mutual funds are one of the most widely held investment products by Americans and advertising is one method by which investors may obtain information on funds. The Dodd-Frank Wall Street Reform and Consumer Protection Act requires GAO to conduct a review of mutual fund advertising, focusing on the advertising of past performance information. This report examines (1) what is known about the impact of fund advertisements on investors, (2) the extent to which performance information is included in advertisements, and (3) the regulatory requirements for fund advertisements and how they are administered and enforced. To address these objectives, GAO reviewed existing and proposed Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) rules, conducted a literature review of studies related to mutual fund advertising's impact on investors, and reviewed a random sample of 300 fund advertisements. GAO also met with regulators, fund companies, academics, and industry and investor protection groups."

Testimony issued by the Government Accountability Office with an abstract that begins "Dissatisfaction with the federal tax system has led to a debate about U.S. tax reform, including proposals for a national consumption tax. One type of proposed consumption tax is a value-added tax (VAT), widely used around the world. A VAT is levied on the difference between a business's sales and its purchases of goods and services. Typically, a business calculates the tax due on its sales, subtracts a credit for taxes paid on its purchases, and remits the difference to the government. While the economic and distributional effects of a U.S. VAT type tax have been studied, GAO issued a report in 2008 that looked at lessons learned from VAT administration in Australia, Canada, France, New Zealand, and the United Kingdom. These countries provided a range of VAT designs from relatively simple to more complex. This statement, which is based on the 2008 report, focuses on (1) the effect VAT design choices, such as exemptions and enforcement mechanisms, have on compliance, administrative costs, and compliance burden; (2) Canada's experience with administering a VAT in conjunction with several different subnational consumption tax arrangements; and (3) the experience that some …

A letter report issued by the Government Accountability Office with an abstract that begins "The U.S. has devoted an increasing proportion of its economy and federal budget to the provision of health care services, but high levels of spending do not guarantee good care. Policymakers, health practitioners, and others have implemented numerous health care interventions that make discrete changes in the organization of health care services in order to enhance the value of health care--that is, improve the quality of care while reducing costs. Examples include programs to reduce bloodstream infections and to coordinate patient care following hospital discharges. This report (1) examines the availability of evidence on the effect of selected interventions on quality of care and costs; (2) identifies key dimensions for assessing the strength of such evidence; and (3) examines factors that can facilitate the implementation and replication of health care interventions. GAO identified a broad and diverse set of health care interventions using published and unpublished sources. For 127 of those interventions, GAO analyzed responses to a questionnaire that it sent to persons knowledgeable about available information on the effect of that particular intervention on quality of care and costs. GAO's questionnaire also asked respondents to …

A letter report issued by the Government Accountability Office with an abstract that begins "The Drug Enforcement Administration's (DEA) Diversion Control Program is responsible for enforcing the Controlled Substances Act (CSA) and ensuring the availability of prescription drugs such as pain relievers and stimulants while preventing their diversion for abuse. The CSA requires entities handling controlled substances--such as manufacturers, pharmacies, and physicians, among others-- to register with DEA, which conducts regulatory investigations of registrants, as well as criminal investigations. GAO was asked (1) how DEA manages diversion investigation efforts, and (2) how DEA ensures policies and procedures are followed for investigations and the extent to which it determines the results of its efforts. GAO reviewed DEA policies and procedures, and interviewed DEA, state, and local officials at eleven locations which were selected on the basis of volume of cases handled, geographic diversity, and other considerations. These observations are not generalizable, but provided insights on DEA operations."