Correspondence issued by the General Accounting Office with an abstract that begins "Recent legislation increased funding for food stamp employment and training programs from fiscal year 1998 through fiscal year 2002, when the Food Stamp Program is scheduled to be reauthorized. To qualify for these additional federal funds, states must maintain their state-funded expenditures for employment and training at a level no lower than in fiscal year 1996; these additional funds are referred to as maintenance-of-efforts funds. The act requires that at least 80 percent of all employment and training funds be spent on able-bodied adults without dependents (ABAWD). The law also gives the states the option to exempt from the work requirement up to 15 percent of their ABAWD population not residing in a waived area or otherwise exempted from the work requirement. GAO examined (1) the trends in ABAWD participation in the Food Stamp Program, including recent data on ABAWDs who are living in waived areas, exempted from work requirements, participating in qualifying employment and training activities, or working, and (2) the extent to which the states have used employment and training program funding. GAO found that ABAWD participation in the Food Stamp Program has dropped rapidly since …

A letter report issued by the General Accounting Office with an abstract that begins "GAO reviewed steps taken by the Bureau of Land Management (BLM) to strengthen its information technology (IT) investment management and acquisition capabilities. The Bureau took these actions to address recommendations made in an earlier report on the failure of the Automated Land and Mineral Record System (ALMRS) to meet BLM's business needs. GAO found that since 1999, BLM has been working to implement GAO recommendations to determine the usefulness of ALMRS and to assess and strengthen its IT investment management and acquisition capabilities. Although the bureau has not yet finished these efforts, it has begun to apply improved management strategies for selecting IT investments, develop processes and practices for controlling and evaluating investments, and build a more mature systems acquisition capability. However, before completing and institutionalizing new investment control processes, the Bureau has begun moving forward with an IT acquisition. As a result, BLM's efforts may be subject to the same project management and management oversight risks that adversely affected the ALMRS/Modernization."

Testimony issued by the General Accounting Office with an abstract that begins "Combating terrorism and ensuring homeland security have created urgent claims on the nation's attention and on the federal budget. Although an economic recovery seems to be underway, the recession that began last spring has had real consequences for the budget. At the same time, the fiscal pressures created by the retirement of the baby boomers and rising health care costs continue unchanged. However, the surpluses also put the nation in a stronger position to respond to the events of September 11 and to the economic slowdown. The nation's commitment to surpluses will be tested. A return to surplus will require sustained discipline and difficult choices. Because the longer-term outlook is driven in large part by known demographic trends, the outlook 20 years from now is surer than the forecast for the next few years. The message of GAO's updated simulations remains the same as last year: absent structural changes in entitlement programs for the elderly, persistent deficits and escalating debt will overwhelm the budget in the long term. Both longer-term and new commitments undertaken after September 11 sharpen the need for competing claims and new priorities. A fundamental …

A statement of record issued by the General Accounting Office with an abstract that begins "GAO studied several leading companies in the private sector that have made dramatic changes to their process for acquiring services. GAO found that these changes generally began with a corporate decision to pursue a more strategic approach to acquiring services--from developing a better picture of what the company was actually spending on services to developing new ways of doing business. The Defense Department (DOD), the government's largest purchaser of services, already has some elements in place that are essential to such a strategic approach, such as a commitment by top management to adopting best practices. However, DOD has yet to conduct a comprehensive analysis of its spending on services or thoroughly assess it's current structure, processes, and roles. DOD's size, the range and complexity of the services that it acquires, the capacity of its information and financial systems, and the unique requirements of the federal government are among the factors that DOD will need to consider as it tailors a strategic approach to its diverse needs."

A letter report issued by the General Accounting Office with an abstract that begins "This report presents the results of GAO's audits of the financial statements of the Internal Revenue Service (IRS) for fiscal years 2001 and 2000. GAO was able to provide unqualified opinions on IRS's fiscal years 2001 and 2000 financial statements because IRS senior management and staff made extraordinary efforts to compensate for serious internal control and systems deficiencies. Despite these efforts, IRS found it extremely difficult to meet the February 27 reporting deadline set by the Office of Management and Budget (OMB). OMB intends to significantly accelerate this deadline in the future. Beginning with fiscal year 2004, IRS will be required to issue its financial statements by November 15--only 6 weeks after the end of the fiscal year. Moreover, the Department of Treasury has established a goal of completing its fiscal year 2002 audit, including those of its component entities, and issuing its department wide accountability report by November 15, 2002. To meet this goal and sustain an unqualified opinion on its financial statements, IRS will need to make systemic changes in how it processes transactions, maintains its financial records, and reports its financial results. At …

Other written product issued by the General Accounting Office with an abstract that begins "GAO published its 2001 Performance and Accountability Report, which combines an assessment of its accomplishments in fiscal year 2001 with its plans for continued progress through fiscal year 2003. GAO noted that (1) its financial reporting is reliable, (2) GAO is in compliance with all applicable laws and regulations, and (3) its performance reporting is reliable."

A letter report issued by the General Accounting Office with an abstract that begins "Unlike other federal programs that make expenditures under the direct control of the government, Medicare constitutes a promise to pay for covered medical services provided to its beneficiaries by about one million providers. Given this open-ended entitlement, it is essential that appropriate and effective rules and policies be specified so that only necessary services are provided and reimbursed. Congress and the Centers for Medicare and Medicaid Services (CMS) have promulgated an extensive body of statutes, regulations, policies, and procedures on what shall be paid for and under what circumstances. Information that carriers give to physicians is often difficult to use, out of date, inaccurate, and incomplete. Medicare bulletins that carriers use to communicate with physicians are often poorly organized and contain dense legal language. Similarly, other means of communicating with physicians, such as toll-free provider assistance lines and websites, have problems with accuracy and completeness. Although all carriers issue bulletins, operate call centers, and maintain websites, each carrier develops its own communications policies and strategies. This approach results in a duplication of effort as well as variations in the quality of carrier communications. CMS provides little …

Testimony issued by the General Accounting Office with an abstract that begins "The collapse of the Enron Corporation and the resulting loss of employee retirement savings highlighted several key vulnerabilities in the nation's private pension system. Asset diversification was a crucial lesson, especially for defined contribution plans, in which employees bear the investment risk. The Enron case underscores the importance of encouraging employees to diversify. Workers need clear and understandable information about their pension plans to make sound decisions on retirement savings. Although disclosure rules require plan sponsors to provide participants with a summary of their plan benefits and rights and to notify them when benefits are changed, this information is not always clear, particularly in the case of complex plans like floor-offset arrangements. Employees, like other investors, also need reliable and understandable information on a company's financial condition and prospects. Fiduciary standards form the cornerstone of private pension protections. These standards require plan sponsors to act solely in the interest of plan participants and beneficiaries. The Enron investigations should determine whether plan fiduciaries acted in accordance with their responsibilities."

Correspondence issued by the General Accounting Office with an abstract that begins "Fugitive felons are ineligible for Supplemental Security Income (SSI) benefits. The Social Security Administration (SSA) will, upon request, provide law enforcement agencies with the current addresses and Social Security numbers of fugitive felons who are SSI recipients. The Privacy Act of 1974 generally prohibits federal agencies from disclosing to anyone, including other government agencies, information they have on file on individuals. When the head of a law enforcement agency asks SSA for information on an individual as part of civil or criminal investigations, SSA has the authority under the Privacy Act to disclose this information but is not required to do so. The Social Security Act does not give SSA the authority to determine if individuals are ineligible for Old Age and Survivors Insurance and Disability Insurance benefits because they are fugitive felons."

Testimony issued by the General Accounting Office with an abstract that begins "In the closing months of last year, insurers claimed that they could not afford to continue providing coverage for potential terrorism losses. Considerable debate has taken place on what the federal government can do to keep commercial insurance companies involved in providing terrorism insurance, even without the protection that they normally receive from reinsurance. Insurance companies are withdrawing from the market because they believe that neither the frequency nor the magnitude of future terrorist losses can be estimated. Insurance coverage for terroris is disappearing, particularly for large businesses and those perceived to be at some risk. This withdrawal is happening fastest among reinsurers. Because the insurers' withdrawal has been gradual, the extent of the potential economic consequences is still unclear. What is clear is that without terrorism insurance, terrorist attacks would dramatically increase direct losses to businesses, employees, and lenders. Furthermore, the government's ability to intervene after a future terrorist attack may be hampered by its lack of claims-processing and payments systems. Even without actual terrorist attacks, some properties and businesses have been unable to find terrorism coverage at any price. These problems are likely to increase as …

Correspondence issued by the General Accounting Office with an abstract that begins "The 1990 amendments to the Clean Air Act require that an additive be added to gasoline in areas with excessive carbon monoxide or ozone pollution. Specifically, those areas with "severe" ozone pollution are required to use reformulated gasoline, which contains at least two percent oxygen by weight. In California, as in other areas of the country, oil refining companies primarily use the oxygenate methyl tertiary butyl ether (MTBE) to meet that requirement. Because MTBE has been detected in ground water, the governor of California has banned MTBE in the state's gasoline by the end of 2002. If California decides to use ethanol to replace MTBE, ethanol production capacity from 2003 through 2005 could likely satisfy U.S. consumption. However, if other states also banned MRBE and moved to ethanol, consumption could increase and affect the industry's ability to meet demand. Moreover, production capacity projections may be overstated because they include not only existing plants and plants under construction, but also new plants being planned, which may not materialize. Although prices have been relatively stable so far, ethanol price spikes could occur in California if supplies were disrupted by either …

Testimony issued by the General Accounting Office with an abstract that begins "The Department of Defense (DOD) and the Department of Veterans Affairs (VA) recently established a medical surveillance system to respond to the health care needs of both military personnel and veterans. A medical surveillance system involves the ongoing collection and analysis of uniform information on deployments, environmental health threats, disease monitoring, medical assessments, and medical encounters and its timely dissemination to military commanders, medical personnel, and others. GAO and others have reported extensively on weaknesses in DOD's medical surveillance capability and performance during the Gulf War and Operation Joint Endeavor. Investigations into the unexplained illnesses of Gulf War veterans revealed DOD's inability to collect, maintain, and transfer accurate data on the movement of troops, potential exposures to health risks, and medical incidents during deployment. DOD improved its medical surveillance system under Operation Joint Endeavor, which provided useful information to military commanders and medical personnel. However, several problems persist. DOD has several efforts under way to improve the reliability of deployment information and enhance its information technology capabilities. Although its recent policies and reorganization reflect a commitment to establish a comprehensive medical surveillance system, much needs to be done …

A letter report issued by the General Accounting Office with an abstract that begins "Employers with defined benefit plans have expressed concern that low interest rates were affecting the reasonableness of their pension calculations used to determine funding requirements under the Employee Retirement and Income Security Act of 1974 (ERISA). ERISA requires employers to use a variation of the 30-year Treasury bond rate for these calculations; however, in 2001 Treasury stopped issuing the 30-year bond. This report provides information on (1) what characteristics of an interest rate make it suitable for determining current liability and lump-sum amounts; (2) what alternatives to the current rate might be considered; and (3) how using an alternative rate might affect plan participants, employers, and the Pension Benefit Guaranty Corporation (PBGC)."

Correspondence issued by the General Accounting Office with an abstract that begins "Since World War II, some employers have voluntarily sponsored postretirement health plans as a benefit to their employees. According to government sources, these health plans constitute the primary source of health coverage for retirees aged 55 to 64 and supplemental coverage for nearly one third of retirees aged 65 or older with Medicare coverage. However, with costs already amounting to hundreds of millions of dollars for large employers and the baby boom generation nearing retirement age, employers are taking actions to control the costs of providing these benefits. In response to concerns that government contractors may be receiving underserved financial benefits by reducing retiree health benefits that were paid for under government contracts, we reviewed (1) what changes, if any, government contractors had made to their retiree health benefit plans and (2) the extent to which government agencies oversee retiree health benefit costs."

Testimony issued by the General Accounting Office with an abstract that begins "The Government Pension Offset (GPO) exemption was enacted in 1977 to equalize the treatment of workers covered by Social Security and those with government pensions not covered by Social Security. Congress asked GAO to (1) assess the extent to which individuals retiring from jobs not covered by Social Security may be transferring briefly to covered jobs in order to avoid the GPO, and (2) estimate the impact of such transfers on the Social Security Trust Fund."

A letter report issued by the General Accounting Office with an abstract that begins "In August 2001, the administration announced competitive sourcing as one of five initiatives in the President's Management Agenda. Under competitive sourcing, federal agencies open their commercial activities to competition among public and private sector sources. While competitive sourcing is expected to encourage innovation and improve efficiency and performance, it represents a major management change for most agencies. This report describes the progress selected agencies have made in establishing a competitive sourcing program, identifies major challenges these agencies are facing, and discusses strategies they are using to select activities for competition."

A letter report issued by the General Accounting Office with an abstract that begins "To ensure that essential government services are available in emergencies--such as terrorist attacks, severe weather, or building-level emergencies-- federal agencies are required to develop continuity of operations (COOP) plans. Responsibility for formulating guidance on these plans and for assessing executive branch COOP capabilities lies with the Federal Emergency Management Agency (FEMA), under the Department of Homeland Security. FEMA guidance, Federal Preparedness Circular (FPC) 65 (July 1999), provides elements of a viable COOP capability, including the requirement that agencies identify their essential functions. GAO was asked to determine the extent to which (1) major civilian executive branch agencies have identified their essential functions and (2) these agencies' COOP plans follow FEMA guidance."

A letter report issued by the General Accounting Office with an abstract that begins "The University of California (University) operates the Los Alamos and Lawrence Livermore National Laboratories for the Department of Energy's National Nuclear Security Administration (NNSA). The two research laboratories, with a combined fiscal year 2003 budget of $2.3 billion, have had problems in such mission support areas as managing projects, conducting business operations, and ensuring safe nuclear operations. GAO was asked to describe the actions taken to address mission support problems identified in 2001, as well as problems that have since emerged, and to assess the main challenges to sustaining mission support improvements."

Correspondence issued by the General Accounting Office with an abstract that begins "Combined, the Department of Defense (DOD) and the Department of Veterans Affairs (VA) provide health care services to about 12 million beneficiaries at an estimated cost of about $53 billion for fiscal year 2004--$26.7 billion for DOD and $26.5 billion for VA. In 1982 the Congress passed the VA and DOD Health Resources Sharing and Emergency Operations Act (Sharing Act) to promote more cost-effective use of health care resources and more efficient delivery of care. Specifically, the Congress authorized military treatment facilities and VA medical centers to enter into sharing agreements to buy, sell, and barter medical and support services. To further encourage on-going collaboration, the Congress, in section 721 of the Bob Stump National Defense Authorization Act (NDAA) for Fiscal Year 2003, directed the Secretary of Defense and the Secretary of Veterans Affairs to establish a joint incentives program to identify and provide incentives to implement, fund, and evaluate creative health care coordination and sharing initiatives between DOD and VA. To facilitate the program, each Secretary is required to contribute a minimum of $15 million from each department's appropriation into an account established in the U. S. …

Correspondence issued by the General Accounting Office with an abstract that begins "In fiscal year 1999, Congress began authorizing the provision of U.S. foreign assistance funds to support programs aimed at strengthening democracy in China, and, in fiscal year 2002, it began appropriating specific amounts for such programs. However, the provision of foreign assistance funds to programs focusing on China continues to be controversial due to concern about some of the Chinese government's human rights practices and certain of its economic, political, and security policies. The House Committee on International Relations expressed concern about the lack of a complete picture of U.S. funding for democracy-related programs focused on China. In response to this concern, we determined how much funding the U.S. government has provided for programs intended to strengthen democracy in China for fiscal years 1999 to 2003, in total and by year, and identified the agencies responsible for administering the funds, as well as the intended purposes of the programs they support. While we focused primarily on bilateral programs, we also briefly describe democracy-related efforts of multilateral institutions that the United States helps support."

A letter report issued by the General Accounting Office with an abstract that begins "In the 1990s, the National Railroad Passenger Corporation (Amtrak) undertook the Northeast High-Speed Rail Improvement Project to make infrastructure improvements that would enable Amtrak to meet a statutory goal of providing 3-hour intercity passenger rail service between Boston and New York City. Amtrak shared responsibility for implementing the project with commuter rail authorities and state governments, and the Federal Railroad Administration (FRA) developed a master plan for the project and provided federal funds to Amtrak. GAO reviewed (1) the status of the project, (2) Amtrak's management of the project, (3) FRA's oversight of the project, and (4) best practices for managing future large-scale rail infrastructure projects."

A letter report issued by the General Accounting Office with an abstract that begins "No large U.S.-flagged cruise ships (ships registered in the U.S. that are U.S.-built, U.S.-owned, and U.S. crewed) are in operation. Foreignflagged vessels cruising to foreign ports serve most of the U.S. demand for cruises. However, Norwegian Cruise Line (NCL) recently obtained an exemption from U.S. maritime law to operate three foreign-built ships under the U.S. flag in Hawaii. Cruise lines and others have raised concerns over the advantage the exemption might confer to NCL, since foreign-flagged competitors are unable to offer the same itineraries due to the Passenger Vessel Services Act (PVSA), which prevents foreign vessels from transporting passengers solely between U.S. ports. Concerns have also been raised over the effect this exemption might have on future attempts to grow the U.S.-flag cruise vessel fleet, since potential U.S.-flag competitors would need to build ships in the United States, presumably at higher cost. GAO was asked to (1) review the original intent of the PVSA and rulings and decisions regarding it, (2) determine if the exemption will affect the implementation of the PVSA or other maritime laws, (3) assess the potential effects of the exemption on competition …

A letter report issued by the General Accounting Office with an abstract that begins "Under Medicare's home health prospective payment system (PPS), home health agencies (HHA) are paid a fixed amount, adjusted for differences in individual patients' expected care needs, for providing an episode (up to 60 days) of care. For this payment, HHAs provide therapy, skilled nursing, medical social service, and aide visits to patients in their homes. GAO previously reported that PPS payments to HHAs were significantly above Medicare costs. GAO recommended that the Centers for Medicare & Medicaid Services (CMS), the agency that administers Medicare, modify the PPS to mitigate extreme financial gains and losses. HHA representatives have raised concerns that Medicare's PPS financially disadvantages certain urban and rural HHAs. GAO was asked to examine (1) whether Medicare payments cover HHAs' costs and (2) what factors distinguished financially weak HHAs from financially strong performers under Medicare. To address these issues, GAO used Medicare cost reports and claims data for freestanding HHAs. GAO analyzed Medicare margins--the difference between Medicare payments and Medicare costs, divided by Medicare payments."

Correspondence issued by the General Accounting Office with an abstract that begins "A declaration of bankruptcy is an extreme example of the failure to manage personal finances. Debtors who file personal bankruptcy petitions usually file under chapter 7 or chapter 13 of the bankruptcy code. Generally, debtors who file under chapter 7 of the bankruptcy code seek a discharge of all their eligible dischargeable debts. Debtors who file under chapter 13 submit a repayment plan, which must be confirmed by the bankruptcy court, for paying all or a portion of their debts over a 3-year period unless, for cause, the court approves a longer period not to exceed 5 years. This letter responds to the request of the Ranking Minority Member, Subcommittee on Oversight of Government Management, the Federal Workforce, and the District of Columbia, Senate Committee on Governmental Affairs. We determined (1) the rate of personal bankruptcy filings among active duty military personnel, and how that rate compared with the rate found in the U.S. population; and (2) factors that should be considered when attempting to compare the rate of bankruptcy filings for active duty military personnel with the rate for the U.S. population."