A statement of record issued by the Government Accountability Office with an abstract that begins "This testimony provides information on selected federal agencies' reported funding and staff resources associated with implementing the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) in 2010, 2011, and 2012. The recent financial crisis is considered to be the worst since the Great Depression, and data from the Board of Governors of the Federal Reserve System (Federal Reserve) show that it resulted in the loss of trillions of dollars in household wealth. Congress passed the Dodd-Frank Act in 2010 in response to the ongoing crisis, including in the legislation numerous provisions intended to strengthen oversight of insured depository institutions and nonbank financial companies and to consolidate consumer protection responsibilities that had been fragmented across multiple agencies. The Dodd-Frank Act also authorized the creation of new offices and agencies to implement the reforms. The extensive reforms and the need for new offices to implement them have raised questions about the potential costs to agencies of complying with the provisions. The testimony today focuses on (1) the agencies' funding estimates and the sources of funds associated with implementing the Dodd-Frank Act, (2) agencies' estimates of …

Correspondence issued by the Government Accountability Office with an abstract that begins "To carry out complex national security initiatives--such as combating illicit financing of terrorist activities, undertaking development projects in conflict zones, and countering piracy off the Horn of Africa--U.S. government agencies must coordinate with a large number of organizations in their planning efforts. Our prior work on the federal government's national security initiatives has determined that U.S. agencies face a number of challenges to effectively collaborating with one another, potentially resulting in gaps and overlaps in policy implementation. In particular, we have found that agencies face challenges to developing overarching strategies to achieve common goals, creating effective mechanisms for operating across agencies, and sharing sensitive information. For example, our work has shown that the Department of State (State) and the U.S. Agency for International Development (USAID) have different planning time frames than the Department of Defense (DOD), which poses a challenge for the three organizations. This report summarizes and formally transmits the enclosed briefing in response to Section 1055 of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011, which required us to examine the need for and implications of a common alignment of world regions in …

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony discusses the potential for overlap, duplication and fragmentation in economic development programs. In March 2011 and more recently in May 2011 we reported on potential duplication among federal economic development programs; this statement discusses this work. We are involved in ongoing work focusing on economic development programs; if they are administered efficiently and effectively, they can contribute to the well-being of our nation's economy at the least cost to taxpayers. Absent a common definition for economic development, we had previously developed a list of nine activities most often associated with economic development. These activities include planning and developing strategies for job creation and retention, developing new markets for existing products, building infrastructure by constructing roads and sewer systems to attract industry to undeveloped areas, and establishing business incubators to provide facilities for new businesses' operations. Our recent work includes information on 80 economic development programs at four agencies--the Departments of Commerce (Commerce), Housing and Urban Development (HUD), and Agriculture (USDA) and the Small Business Administration (SBA). Commerce administers 11 of the 80 programs. According to the agencies, funding provided for these 80 programs in fiscal year …

Testimony issued by the Government Accountability Office with an abstract that begins "Paid preparers are a cornerstone of the U.S. tax system, as they prepare approximately 60 percent of all tax returns filed, and their actions have an enormous impact on the Internal Revenue Service's (IRS) ability to administer tax laws effectively. In previous work, GAO found that taxpayers were not always served well by their paid preparers, and GAO proposed stricter oversight of preparers. In 2010, IRS began implementing new requirements for paid preparers and believes that the requirements will increase taxpayers' compliance. This testimony addresses (1) prior GAO work on paid preparer performance, (2) IRS's progress in implementing the new requirements, and (3) how IRS can use the requirements to improve taxpayer compliance. It is based on GAO's March 2011 report on IRS's implementation of the paid preparer requirements and other GAO reports related to paid preparers. Further, GAO identified additional steps IRS has taken to implement the requirements since the March report was issued. GAO discussed the new information with IRS officials, and they concurred with the findings."

Correspondence issued by the Government Accountability Office with an abstract that begins "In 1996, the Army began development of the Army Workload and Performance System (AWPS) at the direction of the House National Security Committee. AWPS is a capstone information system that receives data from other systems, primarily the Logistics Modernization Program (LMP), and produces management reports and decision support tools intended to assist the Army in linking its industrial facility workload demands to its workforce requirements. AWPS defines workload demands in terms of the amount of work projected to be completed in an 8-hour period and labels each such period as one "resource." Based on the calculation of these resources, reports from AWPS are designed to aid decision makers in determining workforce needs. In 1998, the House National Security Committee directed that the Army provide the committee with a long-range master plan to implement AWPS. The committee also directed that we provide a report on the Army's plan to implement AWPS, and in 1999 we recommended that the Army strengthen its oversight of AWPS development efforts. In 2001, Congress enacted statutory requirements related to the use and implementation of AWPS. Specifically, Section 346 of the National Defense Authorization Act …

Testimony issued by the Government Accountability Office with an abstract that begins "As one of the largest and most complex organizations in the world, the Department of Defense (DOD) faces many challenges in resolving serious problems in its financial management and related business operations and systems. DOD is required by various statutes to (1) improve its financial management processes, controls, and systems to ensure that complete, reliable, consistent, and timely information is prepared and responsive to the financial information needs of agency management and oversight bodies, and (2) produce audited financial statements. Over the years, DOD has initiated numerous efforts to improve the department's financial management operations and achieve an unqualified (clean) opinion on the reliability of its reported financial information. These efforts have fallen short of sustained improvement in financial management or financial statement auditability. The Panel requested that GAO provide its perspective on the status of DOD's financial management weaknesses and its efforts to resolve them; the challenges DOD continues to face in improving its financial management and operations; and the status of its efforts to implement automated business systems as a critical element of DOD's Financial Improvement and Audit Readiness strategy."

Testimony issued by the Government Accountability Office with an abstract that begins "In May 2008, the United States enacted the Consolidated Natural Resources Act (CNRA), amending the United States' covenant with the Commonwealth of the Northern Mariana Islands (CNMI) to establish federal control of CNMI immigration in 2009, with several CNMI-specific provisions affecting foreign workers and investors during a 5-year transition period that began on November 28, 2009, and ends in 2014. One of these provisions authorizes a transitional CNMI-only work permit program that may be extended for up to 5 years at a time past 2014. In addition, CNRA amends existing U.S. immigration law to establish a joint visa waiver program for the CNMI and Guam. CNRA requires that GAO report on implementation of federal immigration law in the CNMI 2 years after enactment. In May 2010, GAO reported that the Department of Homeland Security (DHS) had established border control operations in the CNMI in 2009 but had not concluded negotiations with the CNMI government to resolve certain challenges involving access to CNMI airport space, detention facilities, and databases. GAO also noted that DHS had not yet finalized regulations needed to fully implement CNRA provisions affecting foreign workers, visitors, …

Testimony issued by the Government Accountability Office with an abstract that begins "The attempted bombing of Northwest flight 253 in December 2009 underscores the need for effective aviation security programs. Aviation security remains a daunting challenge with hundreds of airports, thousands of aircraft, and thousands of flights daily carrying millions of passengers and pieces of checked baggage. The Department of Homeland Security's (DHS) Transportation Security Administration (TSA) has spent billions of dollars and implemented a wide range of aviation security initiatives. Three key layers of aviation security are (1) TSA's Screening of Passengers by Observation Techniques (SPOT) program designed to identify persons who may pose a security risk; (2) airport perimeter and access controls security; and (3) checked baggage screening systems. This testimony provides information on the extent to which TSA has taken actions to validate the scientific basis of SPOT, strengthen airport perimeter security and access controls, and deploy more effective checked baggage screening systems. This statement is based on prior reports GAO issued from September 2009 through July 2011 and selected updates in June and July 2011. GAO analyzed documents on TSA's progress in strengthening aviation security, among other things."

Testimony issued by the Government Accountability Office with an abstract that begins "A 2009 assessment by the United States Global Change Research Program (USGCRP) found that many types of extreme weather events, such as heat waves and regional droughts, have become more frequent and intense during the past 40 to 50 years. According to the assessment, changes in extreme weather and climate events will affect many aspects of society and the natural environment, such as infrastructure. In addition, the Department of Defense found that climate change may act as an accelerant of instability or conflict, placing a burden to respond on militaries around the world. According to the National Academies, USGCRP, and others, greenhouse gases already in the atmosphere will continue altering the climate system into the future regardless of emissions control efforts. Therefore, adaptation--defined as adjustments to natural or human systems in response to actual or expected climate change--is an important part of the response to climate change. This testimony addresses (1) the actions federal, state, and local authorities are taking to adapt to climate change; (2) the challenges that federal, state, and local officials face in their efforts to adapt and actions federal agencies could take to help …

Correspondence issued by the Government Accountability Office with an abstract that begins "This letter provides additional information about federal financial literacy activities that were addressed in two reports to Congress issued in March 2011, Opportunities to Reduce Potential Duplication in Government Programs, Save Tax Dollars, and Enhance Revenue and List of Selected Federal Programs That Have Similar or Overlapping Objectives, Provide Similar Services, or Are Fragmented Across Government Missions. These reports were prepared in response to a statutory requirement to identify federal programs, agencies, offices, and initiatives, either within departments or governmentwide that have duplicative goals or activities."

Correspondence issued by the Government Accountability Office with an abstract that begins "Since 2000, the Navy has undertaken a number of initiatives to achieve greater efficiencies and reduce costs. For example, it reduced the workforce requirements for some of its ships and transitioned away from instructor-led training programs to more computer-based training. In June 2010, we reported the Navy lacked a firm analytical basis for some of the reductions it made to ship crew sizes and therefore could not be assured it had appropriately sized its crews to maintain material readiness and accomplish necessary tasks aboard its ships. We also reported the Navy lacked outcome-based performance measures to evaluate the impact of changes to training on trainees' job performance, knowledge, skills, and abilities once they report to their ships and therefore could not fully determine the effectiveness of the training changes it implemented and whether further adjustments were necessary. We recommended the Navy validate the underlying assumptions and standards it uses to calculate workforce requirements and, as necessary, based on this assessment, reevaluate its cruiser and destroyer workload requirements. We also recommended the Navy develop additional metrics to measure the effectiveness of its training. The Navy concurred with our recommendations. …

Testimony issued by the Government Accountability Office with an abstract that begins "A long-standing goal of Congress has been to improve the performance and transparency of the federal government through the use of information technology (IT). The Office of Management and Budget (OMB) plays a key role in improving the transparency and oversight of federal investments. Given the size of these investments and their importance to the health, economy, and security of the nation, it is critical for OMB and federal agencies to provide appropriate program oversight and ensure adequate transparency. GAO was asked to testify on IT systems used by federal agencies to report spending. To prepare this statement, GAO drew on previously published work on two government reporting mechanisms--an IT Dashboard and USAspending.gov. These public Web sites were deployed by OMB in June 2009 and December 2007, respectively. The Dashboard provides detailed information on approximately 800 major federal IT investments, including assessments of these investments' performance against cost and schedule targets (referred to as ratings). USAspending.gov contains data on federal awards (e.g., contracts, loans, and grants) across the federal government."

Correspondence issued by the Government Accountability Office with an abstract that begins "Recent catastrophic flooding in Arkansas, Louisiana, Mississippi, Missouri, and Tennessee caused levee breaches and forced mandatory evacuations; while record flooding along the Mississippi and lower Ohio River valleys prompted the U.S. Army Corps of Engineers (Corps) to rupture the Bird's Point-New Madrid Levee, resulting in the flooding of more than 130,000 acres of Missouri farmland. The destruction is estimated to have caused hundreds of millions in property damages. These events underscore the importance of the nation's levee system and the role federal agencies play in assessing levee integrity and assisting communities in the aftermath of levee failure. Levees are found in approximately 22 percent of U.S. counties, where almost half of the U.S. population resides and are, for the most part, owned and maintained by the locality in which they are located. The Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security (DHS), is responsible for mapping flood-prone areas across the country and issuing levee accreditations for the purposes of the National Flood Insurance Program (NFIP). Under the NFIP regulations, FEMA requires that levee owners or community officials seeking to demonstrate the flood protection …

Correspondence issued by the Government Accountability Office with an abstract that begins "Pakistan is central to U.S. efforts to disrupt, dismantle, and defeat al Qaeda and deny its resurgence in the Afghanistan-Pakistan region. The United States has sought to secure these interests through counterterrorism and counterinsurgency cooperation, as well as through a long-term partnership anchored, in part, by increased civilian and military assistance. Since fiscal year 2002, the U.S. government has provided the Pakistani government almost $21 billion in assistance and reimbursements toward these goals. However, al Qaeda and other terrorists and violent extremists continue to promote instability and use safe havens in Pakistan's western border region to plan and train for attacks against U.S. interests. At the same time, the United States continues to be concerned with the ongoing effect of A. Q. Khan's illicit transfer of nuclear technology to Iran, North Korea, and Libya. To address these and other concerns, in October 2009, Congress enacted the Enhanced Partnership with Pakistan Act of 2009, which, among other things, limits certain security-related assistance to Pakistan each fiscal year from 2011 through 2014. Before the United States can provide security-related assistance to Pakistan in each of those fiscal years, the Secretary …

Correspondence issued by the Government Accountability Office with an abstract that begins "This report responds to Congress' March 2010 request related to the Federal Emergency Management Agency's (FEMA) efforts to delegate grants administration responsibilities to its regions. Specifically, we are reporting on (1) the extent to which FEMA has operationalized delegation of grants administration responsibilities for preparedness grants to the regions, and (2) the extent to which FEMA has assessed the regions' capacity to assume increased responsibility for administration of preparedness grants."

Correspondence issued by the Government Accountability Office with an abstract that begins "The Patient Protection and Affordable Care Act (PPACA), as amended by the Health Care and Education Reconciliation Act of 2010 (HCERA), contained provisions to increase access to health insurance coverage through: health insurance market reforms; an expansion of Medicaid eligibility; and the creation of health insurance exchanges to provide small employers and individuals access to coverage. In addition, PPACA contained provisions designed to improve the quality of health care, reduce expenditures, and provide incentives for preventive and primary care. To help implement PPACA, federal departments and agencies awarded contracts, including contracts for consulting services. Contractors and consultants perform a variety of tasks, including research, market reviews, actuarial support, logistics and technical support, data management, and information technology support. As required by the Department of Defense and Full-Year Continuing Appropriations Act, 2011, this report provides information on contracts awarded by the Department of Health and Human Services (HHS) and other federal departments and agencies related to authority provided by PPACA, including information on firms retained to facilitate contracting and consultants retained by HHS and other federal departments and agencies to assist in PPACA implementation."

Correspondence issued by the Government Accountability Office with an abstract that begins "The National Aeronautics and Space Administration (NASA) procures most of its goods and services through contracts, and it terminates very few of them. In fiscal year 2010, for example, NASA's procurements, ranging from small contracts for human resources consulting services to multimillion dollar contracts to build and operate spacecraft, totaled approximately $17.4 billion, representing about 83.4 percent of the agency's obligations that year. That same year, it terminated 28 of 16,343 active contracts and orders--a termination rate of about .17 percent. This rate is about the same--less than 0.2 percent--for each of the past 5 fiscal years. NASA contract terminations--the complete or partial cancellation of work under a contract before the contract's period of performance ends--are rare but could become more common in the future. The federal government is facing real fiscal limitations and will have to make difficult choices about upcoming priorities. This reality makes it more important than ever that NASA manage its projects as efficiently and effectively as possible and within its budget. This is a struggle for NASA. Our work has shown that NASA's large-scale projects tend to cost more and take longer to …

Testimony issued by the Government Accountability Office with an abstract that begins "Since 2001, strategic human capital management for federal agencies has been on GAO's high-risk list. Although some progress has been made, GAO reported in February 2011 that the area remains on the high-risk list because of the need for agencies, including DOD, to address current and emerging skill gaps that are undermining their ability to fulfill their missions. The Department of Defense (DOD) had about 718,000 civilians as of March 2010, which includes its senior leader and acquisition workforces. DOD has noted that approximately 30 percent of its civilian workforce--and 90 percent of its senior leader workforce--will be eligible to retire by March 31, 2015. The National Defense Authorization Act for Fiscal Year 2010 required (1) DOD to report on plans for its overall civilian, senior leader, and acquisition workforces for 2009 through 2012; (2) DOD to address a series of legislative requirements for each workforce; and (3) GAO to review and report on these plans. DOD has informed GAO that it expects to issue its next set of plans in September 2011. In anticipation of these plans, it is helpful to understand key issues identified during GAO's …

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony discusses our work on residential real estate valuations. Real estate valuations, which encompass appraisals and other value estimation methods, play a critical role in mortgage underwriting by providing evidence that the market value of a property is sufficient to help mitigate losses if the borrower is unable to repay the loan. However, recent turmoil in the mortgage market has raised questions about mortgage underwriting practices, including the quality and credibility of some valuations. An investigation into industry appraisal practices by the New York State Attorney General led to an agreement in 2008 between the Attorney General; Fannie Mae and Freddie Mac (the enterprises); and the Federal Housing Finance Agency (FHFA), which regulates the enterprises. This agreement included the Home Valuation Code of Conduct (HVCC), which set forth certain appraiser independence requirements for loans sold to the enterprises and took effect in 2009. The Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. No. 111-203) (the Dodd-Frank Act) directed us to study the effectiveness and impact of various valuation methods and the options available for selecting appraisers, as well as the impact of HVCC. This testimony …

Testimony issued by the Government Accountability Office with an abstract that begins "The Social Security Statement (the statement) is the federal government's main document for communicating with more than 150 million workers about their Social Security benefits. Provided annually, it serves as a key financial literacy tool that can educate the public about Social Security Administration (SSA) program benefits, aid in financial planning, and ensure that workers' earnings records are complete and accurate. The statement is also a key tool for communicating with the public about the long-term financial challenges the Social Security system faces. However, due to budget constraints, SSA chose to suspend mailings of the statement in March 2011. GAO examined (1) the current status of the statement and (2) ways SSA plans to improve the usefulness of the statement. To address these issues, GAO interviewed SSA officials and reviewed agency documents and our prior work on the statement's understandability. GAO also provided a draft of this testimony to SSA for review and comment."

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 challenges in developing and acquiring new technologies to address homeland security needs. DHS acquisition programs represent hundreds of billions of dollars in life-cycle costs and support a wide range of missions and investments including border surveillance and screening equipment, nuclear detection equipment, and technologies used to screen airline passengers and baggage for explosives, among others. Since its creation in 2003, DHS has spent billions of dollars developing and procuring technologies and other countermeasures to address various threats and to conduct its missions. Within DHS, the Science and Technology Directorate (S&T) conducts general research and development and oversees the testing and evaluation efforts of DHS components, which are responsible for developing, testing, and acquiring their own technologies. This testimony focuses on the findings of our prior work related to DHS's efforts to acquire and deploy new technologies to address homeland security needs. Our past work has identified three key challenges: (1) developing technology program requirements, (2) conducting and completing testing and evaluation of technologies and (3) incorporating information on costs and benefits in making …

Correspondence issued by the Government Accountability Office with an abstract that begins "The federal government has numerous programs designed to improve Americans' financial literacy, some of which are targeted at helping consumers determine whether and when to purchase a home, how to manage a mortgage, and how to deal with setbacks that could limit their ability to make timely mortgage payments. However, as we have reported, little is known about the effectiveness of specific strategies for improving financial literacy. In the Housing and Economic Recovery Act of 2008 (HERA), Congress created a pilot program to provide grants to providers of financial education and counseling services to prospective homebuyers. Pursuant to HERA, the goals of this education and counseling include increasing the knowledge and decision-making capabilities of prospective homebuyers, identifying successful methods resulting in positive behavioral change for financial empowerment, and educating prospective homebuyers about options for building savings. HERA also mandated that we submit a report to Congress evaluating this grant program, which was later named the Financial Education and Counseling (FEC) Pilot Program. Accordingly, the objectives of this report are to describe (1) the characteristics of the organizations providing services under the FEC program and how they were selected, …

Correspondence issued by the Government Accountability Office with an abstract that begins "On March 1, 2011, we issued our report expressing our opinion on the American Battle Monuments Commission's (the Commission) fiscal years 2010 and 2009 financial statements and our opinion on the Commission's internal control as of September 30, 2010. We also reported on the results of our tests of the Commission's compliance with selected provisions of laws and regulations during fiscal year 2010. During the fiscal year 2010 audit, we identified several internal control deficiencies that, while not material individually or in the aggregate to the Commission's financial statements, warrant management's attention. The purpose of this report is to present these deficiencies, provide recommendations to address these matters, and provide an update on the status of our prior years' recommendations."

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony discusses highlights of GAO's report on the Environmental Protection Agency's (EPA) implementation of requirements for determining whether additional drinking water contaminants warrant regulation. The number of potential drinking water contaminants is vast--as many as tens of thousands of chemicals may be used across the country, and EPA has identified more than 6,000 chemicals that it considers to be the most likely source of human or environmental exposure. The potential health effects of exposure to most of these chemicals, and the extent of their occurrence in drinking water, are unknown. Under 1996 amendments to the Safe Drinking Water Act, every 5 years EPA is to determine for at least five contaminants whether regulation is warranted, considering those that present the greatest public health concern. EPA issued final regulatory determinations in 2003 and 2008 on a total of 20 contaminants, deciding in each case not to regulate. EPA did not recommend any new contaminants for regulation until February 2011, when it reversed its controversial 2008 preliminary decision to not regulate perchlorate, an ingredient in rocket fuel and other products. This statement summarizes our report being released today that …