Testimony issued by the General Accounting Office with an abstract that begins "GAO and the Department of Education's Office of Inspector General have issued many reports in recent years on the Department's financial management problems, including internal control weaknesses that put the Department at risk for waste, fraud, abuse, and mismanagement. In an April 2001 assessment of the internal control over Education's payment processes and the associated risks for improper payments, GAO identified four broad categories of internal control weaknesses: poor segregation of duties, lack of supervisory review, inadequate audit trails, and inadequate computer systems' applications controls. This testimony discusses how these weaknesses make Education vulnerable to improper payments in grant and loan payments, third party drafts, and government purchase card purchases. GAO found that Education's student aid application processing system for grants and loans lacks an automated edit check that would identify potentially improper payments from students who were much older than expected, a single social security number associated with two or more dates of birth, grants to recipients in excess of statutory limits, and searches for invalid social security numbers. GAO also found problems with Education's third party draft system. Specifically, Education (1) circumvented a system's application control …

Testimony issued by the General Accounting Office with an abstract that begins "Although the Department of Veterans Affairs (VA) has made significant progress establishing a national formulary that has generally met with acceptance by prescribers and patients, VA oversight has not fully ensured standardization of its drug benefit nationwide. The three medical centers GAO visited did not comply with the national formulary. Specifically, two of the three medical centers omitted more than 140 required national formulary drugs, and all three facilities inappropriately modified the national formulary list of required drugs for certain drug classes by adding or omitting some drugs. In addition, as VA policy allows, Veterans Integrated Service Networks (VISN) added drugs to supplement the national formulary ranging from five drugs at one VISN to 63 drugs at another. However, VA lacked criteria for determining the appropriateness of the actions networks took to add these drugs. In addition to problems standardizing the national formulary, GAO identified weaknesses in the nonformulary approval process. Although the national formulary directive requires certain criteria for approving nonformulary drugs, it does not prescribe a specific nonformulary approval process. As a result, the processes health care providers must follow to obtain nonformulary drugs differ among …

Testimony issued by the General Accounting Office with an abstract that begins "Critical infrastructure protection (CIP) enhances the security of the nation's cyber and physical public and private infrastructure. Federal agencies and other public and private entities rely extensively on computerized systems and electronic data to support their missions. CIP issues involve developing a national CIP strategy, improving analysis and warning capabilities, improving information sharing on threats and vulnerabilities, and addressing pervasive weaknesses in federal information security. Although the national strategy for homeland security acknowledges the need to address these challenges, much work remains to successfully implement it."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the high-risk program areas and management challenges at the Department of Housing and Urban Development (HUD). For many years, management and oversight weaknesses have made its programs vulnerable to fraud, waste, abuse, and mismanagement. The current administration has placed improving HUD's management among its highest priorities and wants to remove the high-risk designation from all HUD programs by 2005. Human capital management is the most pressing management challenge facing HUD. HUD has begun the initial stages of workforce planning; it has completed its resource estimation and allocation process, which estimates the staff needed to handle the current workload in each office, and a detailed analysis of potential staff losses due to retirement. However, the Department does not have a comprehensive workforce plan. Effective acquisition management is of increasing importance because, as HUD downsized its staff, it relied more and more on outside contractors to accomplish its mission. HUD has made progress in the past few years improving its acquisition management practices, but it faces the challenge of ensuring that, where it relies on contractors to perform its mission, it will hold these contractors accountable for …

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the planned National Polar-Orbiting Operational Environmental Satellite System (NPOESS). Today's polar-orbiting environmental satellite program is a complex infrastructure encompassing two satellite systems, supporting ground stations, and four central data processing centers that provide general weather information and specialized environmental products to a variety of users, including weather forecasters, the military, and the public. NPOESS will merge the two satellite systems into a single state-of-the-art environment monitoring satellite system, at a significant cost savings. To handle this increased volume of satellite data, the four processing centers will need to build up their respective infrastructures, and they will need to efficiently incorporate new data into their weather products and models."

Testimony issued by the Government Accountability Office with an abstract that begins "The private sector is increasingly involved in financing and operating highway facilities under long-term concession agreements. In some cases, this involves new facilities; in other cases, firms operate and maintain an existing facility for a period of time in exchange for an up-front payment to the public sector and the right to collect tolls over the term of the agreement. In February 2008 GAO reported on (1) the benefits, costs, and trade-offs of highway public-private partnerships; (2) how public officials have identified and acted to protect the public interest in these arrangements; and (3) the federal role in highway public-private partnerships and potential changes in this role. The Senate Finance Committee asked GAO to testify on this report and to highlight its discussion of tax issues. GAO reviewed the experience of projects in the U.S. (including the Chicago Skyway and Indiana Toll Road agreements), Australia, Canada, and Spain."

Testimony issued by the Government Accountability Office with an abstract that begins "Over the past 15 years, legislative and executive branch reform efforts have attempted to shift the focus of federal government management from a preoccupation with activities to the results or outcomes of those activities. Based on over a decade of work in this area, GAO has found a transformation in the capacity of the federal government to manage for results, including an infrastructure of outcome-oriented strategic plans, performance measures, and accountability reporting that provides a solid foundation for improving the performance of federal programs. However, agencies have made less progress in getting their managers' to use performance information in their decision making. GAO was asked to testify on the preliminary results of ongoing work looking at (1) trends in federal managers' use of performance information to manage, both governmentwide and at the agency level; (2) how agencies can encourage greater use of performance information to improve results; and (3) lessons learned from prior management reforms for the next administration. Our statement is based on prior GAO reports and surveys we conducted in 1997, 2000, 2003, and 2007. For the results of our 2007 survey, see e-supplement GAO-08-1036SP. GAO …

Testimony issued by the General Accounting Office with an abstract that begins "The Department of Defense (DOD) faces many risks in its use of globally networked computer systems to perform operational missions--such as identifying and tracking enemy targets--and daily management functions--such as paying soldiers and managing supplies. Weaknesses in these systems, if present, could give hackers and other unauthorized users the opportunity to modify, steal, inappropriately disclose, and destroy sensitive military data. GAO was asked, among other things, to discuss DOD's efforts to protect its information systems and networks from cyber attack, focusing on its reported progress in implementing statutory information security requirements."

Testimony issued by the Government Accountability Office with an abstract that begins "From 1987 through 2003, the United States provided more than $2 billion in economic assistance to the Federated States of Micronesia (FSM) and the RMI under a Compact of Free Association; approximately $579 million of this economic assistance went to the RMI. In 2003, the U.S. government approved an amended compact with the RMI that provides an additional 20 years of assistance, totaling about $1.5 billion from 2004 through 2023. The Department of the Interior's Office of Insular Affairs (OIA) is responsible for administering and monitoring this U.S. assistance. The amended compact with the RMI identifies the additional 20 years of grant assistance as intended to assist the RMI government in its efforts to promote the economic advancement and budgetary self-reliance of its people. The assistance is provided in the form of annually decreasing grants that prioritize health and education, paired with annually increasing contributions to trust funds intended as a source of revenue for the country after the grants end in 2023. The amended compact also contains several new funding and accountability provisions that strengthen reporting and bilateral interaction. These provisions include requiring the establishment of a …

Testimony issued by the Government Accountability Office with an abstract that begins "The Cayman Islands is a major offshore financial center and the registered home of thousands of corporations and financial entities. Financial activity there is in the trillions of dollars annually. One Cayman building--Ugland House--has been the subject of public attention as the listed address of thousands of companies. To help Congress better understand the nature of U.S. persons' business activities in the Cayman Islands, GAO was asked to study (1) the nature and extent of U.S. persons' involvement with Ugland House registered entities and the nature of such business; (2) the reasons why U.S. persons conduct business in the Cayman Islands; (3) information available to the U.S. government regarding U.S. persons' Cayman activities; and (4) the U.S. government's compliance and enforcement efforts. GAO interviewed U.S. and Cayman government officials and representatives of the law firm housed in Ugland House, and reviewed relevant documents. The full report on GAO's review is GAO-08-778, being released at the same time as this testimony."

Testimony issued by the Government Accountability Office with an abstract that begins "The Department of Homeland Security (DHS) Privacy Office was established with the appointment of the first Chief Privacy Officer in April 2003, as required by the Homeland Security Act of 2002. The Privacy Office's major responsibilities include: (1) reviewing and approving privacy impact assessments (PIA)--analyses of how personal information is managed in a federal system, (2) integrating privacy considerations into DHS decision making and ensuring compliance with the Privacy Act of 1974, and (3) preparing and issuing annual reports and reports on key privacy concerns. GAO was asked to testify on its recent report examining progress made by the DHS Privacy Office in carrying out its statutory responsibilities. GAO compared statutory requirements with Privacy Office processes, documents, and activities."

Testimony issued by the Government Accountability Office with an abstract that begins "As of September 2006, nearly 1.8 million entities were recognized as tax exempt organizations by the Internal Revenue Service (IRS). As such, they do not have to pay federal income taxes. Exempt organizations are still required to remit amounts withheld from employees' wages for federal income tax, Social Security and Medicare, as well as other taxes. Previous GAO work identified numerous government contractors, Medicare providers, and charities participating in the Combined Federal Campaign (CFC) with billions in unpaid federal taxes. Today's testimony, based on a report that we are releasing today, summarizes the results of work we performed at the request of Representative Ramstad, Ranking Member of the Subcomitte on Oversight, Committee on Ways and Means, to audit exempt organizations. Specifically, this testimony covers whether and to what extent (1) exempt organizations have unpaid federal taxes, including payroll taxes; (2) selected case study organizations and their executives are involved in abusive or potentially criminal activity; and (3) exempt organizations with unpaid federal taxes received direct grants from certain federal agencies. GAO reviewed unpaid taxes and exempt organization data from IRS and selected 25 case studies for audit and …

Testimony issued by the General Accounting Office with an abstract that begins "In May 2003, the Office of Management and Budget (OMB) released a revised Circular A-76, which represents a comprehensive set of changes to the rules governing competitive sourcing--one of five governmentwide items in the President's Management Agenda. Determining whether to obtain services in-house or through commercial contracts is an important economic and strategic decision for agencies, and the use of Circular A-76 is expected to grow throughout the federal government. In the past, however, the A-76 process has been difficult to implement, and the impact on the morale of the federal workforce has been profound. Concerns in the public and private sectors were also raised about the timeliness and fairness of the process for public-private competitions. It was against this backdrop that the Congress enacted legislation mandating a study of the A-76 process, which was carried out by the Commercial Activities Panel, chaired by the Comptroller General of the United States. This testimony focuses on how the new Circular addresses the Panel's recommendations reported in April 2002, the challenges agencies may face in implementing the new Circular A-76, and the need for effective workforce practices to help ensure …

Testimony issued by the Government Accountability Office with an abstract that begins "Millions of drivers hold commercial driver licenses (CDL), allowing them to operate commercial vehicles. The Department of Transportation (DOT) established regulations requiring medical examiners to certify that these drivers are medically fit to operate their vehicles and provides oversight of their implementation. Little is known on the extent to which individuals with serious medical conditions hold CDLs. Because the effectiveness of the medical certification process is not known, this testimony, and the accompanying report (GAO-08-826) that GAO is releasing today focuses on (1) GAO's analyses of the magnitude of commercial drivers with serious medical conditions, and (2) examples of cases where careful medical examinations did not occur on commercial drivers with serious medical conditions. To examine the extent individuals holding CDLs have significant disabilities, GAO identified those who were in both DOT's CDL database and selected disability databases of Social Security Administration, Office of Personnel Management, and Departments of Veterans Affairs and Labor and have been identified as 100 percent disabled according to the program's criteria. GAO obtained current CDL data from 12 selected states. To provide case studies, GAO focused on 4 states--Florida, Maryland, Minnesota, and Virginia. …

Testimony issued by the Government Accountability Office with an abstract that begins "The nonprofit sector is an important means through which public services are delivered and national goals addressed. The federal government increasingly relies on networks, often involving nonprofits that address many issues--health care, education, and human services, for example. Because nonprofit organizations play a key role as partners with the federal government, there is a need to better understand the sector. This testimony (1) provides a picture of the nonprofit sector--its size, composition, and role in the economy; (2) discusses how and why the federal government partners with the sector; and (3) identifies issues related to the sector as a federal partner that need to be better understood. GAO's preliminary work on this topic focused on the intersection of nonprofit organizations and the federal government, including trends, the use of federal funding, and emerging issues. GAO interviewed key experts from relevant associations and academia, reviewed related research, and hosted roundtable discussions with key researchers and practitioners in the nonprofit area."

Testimony issued by the Government Accountability Office with an abstract that begins "Since its inception in November 2001, the Transportation Security Administration (TSA) has focused much of its efforts on aviation security, and has developed and implemented a variety of programs and procedures to secure the commercial aviation system. TSA funding for aviation security has totaled about $26 billion since fiscal year 2004. This testimony focuses on TSA's efforts to secure the commercial aviation system through passenger screening, strengthening air cargo security, and watch-list matching programs, as well as challenges that remain. It also addresses crosscutting issues that have impeded TSA's efforts in strengthening security. This testimony is based on GAO reports and testimonies issued from February 2004 through July 2008 including selected updates obtained from TSA officials in June and July 2008."

Other written product issued by the Government Accountability Office with an abstract that begins "This is an E-supplement to GAO-08-778. The Cayman Islands is a major center for financial activity and entities such as corporations, partnerships, and trusts can all play roles in those activities. U.S. taxpayers have a range of relationships to those entities, including as owners, as investors, as partners, and as beneficiaries of trusts. The activities of Cayman Islands entities can have tax consequences for under U.S. law. To understand more about the nature of financial activity in the Cayman Islands and its consequences under U.S. tax law, we examined relevant portions of Cayman Islands and U.S. law. This supplement discusses four areas of Cayman Islands and U.S. law. Part I is an overview of Cayman Islands law governing corporations, partnerships, and trusts. It also discusses the function of the registered office under Cayman Islands law. Part II presents an overview of Cayman Islands law governing the sharing of information by the Cayman Islands government with the U.S. government. Part III discusses certain Cayman Islands monetary authority and anti-money-laundering laws and compares specific Cayman Islands and United States regulations designed to combat money laundering. Finally, Part IV …

Testimony issued by the General Accounting Office with an abstract that begins "The Social Security Administration (SSA) has had difficulty in conducting timely reviews of beneficiaries' cases to ensure they are still eligible for disability benefits. SSA has been taking steps to improve the cost-effectiveness of its review process. SSA has linked the review process to eligibility for a new benefit that provides return-to-work services. This testimony looks at SSA's ability to stay current with future reviews, identifies potential improvements to the review process, and assesses the review process--return-to-work link."

Testimony issued by the General Accounting Office with an abstract that begins "Providing benefits to disabled individuals is one of the Social Security Administration's (SSA) most important service delivery obligations--touching the lives of about 10 million individuals. In recent years, however, providing this benefit in a timely and efficient manner has become an increasing challenge for the agency. This past January, in fact, GAO designated SSA's disability programs as highrisk. Following a prior unsuccessful attempt, the agency is now in the midst of a major initiative to automate its disability claims functions, taking advantage of technology to improve this service. Seeking immediate program improvements, SSA is using an accelerated approach--called AeDib--to develop an electronic disability claims processing system. At the request of the Subcommittee on Social Security, House Committee on Ways and Means, GAO is currently assessing the strategy that underlies SSA's latest initiative to develop the electronic disability system. For this testimony, GAO was asked to discuss its key observations to date regarding the AeDib initiative, including strategy, risks, and stakeholder involvement. GAO plans to discuss more fully the results of this continuing review in a subsequent report"

Testimony issued by the Government Accountability Office with an abstract that begins "In July 2004, GAO reported that the six Department of Veterans Affairs (VA) medical centers it audited lacked a reliable property control database and had problems with implementation of VA inventory policies and procedures. Fewer than half the items GAO selected for testing could be located. Most of the missing items were information technology (IT) equipment. In light of these concerns and recent thefts of laptops and data breaches at VA, this testimony focuses on (1) the risk of theft, loss, or misappropriation of IT equipment at selected locations; (2) whether selected locations have adequate procedures in place to assure accountability and physical security of IT equipment in the excess property disposal process; and (3) what actions VA management has taken to address identified IT inventory control weaknesses. GAO statistically tested inventory controls at four case study locations."

Testimony issued by the Government Accountability Office with an abstract that begins "The Navy is beset with long-standing problems that affect its ability to accomplish ambitious goals for its shipbuilding portfolio. Significant cost growth and long schedule delays are persistent problems. Making headway on these problems is essential in light of the serious budget pressures facing the nation. This testimony focuses on (1) cost growth in shipbuilding, (2) acquisition approaches in the LPD 17, Littoral Combat Ship, DDG 1000 and CVN 78 programs and (3) steps the Navy can take to improve its acquisition decision-making, particularly the adoption of a knowledge-based framework."

Testimony issued by the Government Accountability Office with an abstract that begins "GAO has issued reports on the U.S. Postal Service's (USPS) strategy for realigning its mail processing network and improving delivery performance information. These reports recommended that the Postmaster General (1) strengthen planning and the overall integration of its realignment efforts, and enhance accountability by establishing measurable targets and evaluating results, (2) improve delivery service standards and performance measures, and (3) improve communication with stakeholders by revising its Area Mail Processing (AMP) Communication Plan to improve public notice, engagement, and transparency. The 2006 postal reform act required USPS to develop a network plan by June 2008 that described its vision and strategy for realigning its network; the anticipated costs, cost savings, and other benefits of its realignment initiatives; performance measures for its delivery service standards, and its communication procedures for consolidating AMP operations. This testimony discusses USPS's actions toward addressing GAO recommendations to (1) strengthen network realignment planning and accountability, (2) improve delivery performance information, and (3) improve communication with stakeholders. This testimony is based on prior GAO work, a review of USPS's 2008 Network Plan and revised AMP Communication Plan, and updated information from USPS officials. USPS did …

Testimony issued by the Government Accountability Office with an abstract that begins "As the baby boom generation ages, the demand for long-term care services is likely to grow and could strain state and federal resources. The increased use of long-term care insurance (LTCI) may be a way of reducing the share of long-term care paid by state and federal governments. Oversight of LTCI is primarily the responsibility of states, but over the past 12 years, there have been federal efforts to increase the use of LTCI while also ensuring that consumers purchasing LTCI are adequately protected. Despite this oversight, concerns have been raised about both premium increases and denials of claims that may leave consumers without LTCI coverage when they begin needing care. This statement focuses on oversight of the LTCI industry's (1) rate setting practices and (2) claims settlement practices. This statement is based on findings from GAO's June 2008 report entitled Long-Term Care Insurance: Oversight of Rate Setting and Claims Settlement Practices (GAO-08-712). For that report, GAO reviewed information from the National Association of Insurance Commissioners (NAIC) on all states' rate setting standards. GAO also completed 10 state case studies on oversight of rate setting and claims settlement …

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony discusses the challenges faced by the National Aeronautics and Space Administration (NASA) on the International Space Station (ISS) and the Space Shuttle. NASA is in the midst of one of the most challenging periods in its history. As part of its Vision for Space Exploration, NASA is simultaneously developing a range of new technologies and highly complex systems to support future exploration efforts, completing assembly of the space station, and retiring the space shuttle. This is NASA's biggest transition effort since landing humans on the moon more than 3 decades ago and then initiating the Space Shuttle Program a few years later. Taken together, these efforts create significant challenges in terms of managing investments, launch and other facilities, workforce, international partners, and suppliers. Clearly, any delays or problems in completing and sustaining the space station itself, may well have reverberating effects on NASA's ability to ramp up efforts to develop technologies needed for future exploration or to support other important missions. GAO has undertaken a body of work related to NASA's transition efforts that include NASA's industrial supplier base, its workforce challenges, development of new crew …