Correspondence issued by the Government Accountability Office with an abstract that begins "Since 1992, GAO has published long-term fiscal simulations of what might happen to federal deficits and debt levels under varying policy assumptions. GAO developed its long-term model in response to a bipartisan request from Members of Congress who were concerned about the long-term effects of fiscal policy. In 1992 GAO said: "The federal budget is structurally unbalanced. This will do increasing damage to the economy and is unsustainable in the long term. Regardless of the approach chosen, prompt and meaningful action is essential. The longer it is delayed, the more painful it will be." These words are as relevant today as when GAO first published them. GAO updates its simulations three times a year as new estimates become available from the Congressional Budget Office's (CBO) Budget and Economic Outlook (January), Social Security and Medicare Trustees Reports (early spring), and CBO's Budget and Economic Outlook: An Update (late summer)."

Correspondence issued by the Government Accountability Office with an abstract that begins "In May 2006, the Department of Energy (DOE) proposed transferring appropriations from some DOE accounts to begin a new loan guarantee program (LGP) authorized by the Energy Policy Act of 2005 (EPAct 05). Title XVII of EPAct 05--Incentives for Innovative Technologies--authorized the LGP to guarantee loans for projects intended to (1) decrease air pollutants or man-made greenhouse gases by reducing their production or by sequestering them (storing them to prevent their release into the atmosphere), (2) employ new or significantly improved technologies compared with current commercial technologies, and (3) have a "reasonable prospect" of repayment. Such projects could include renewable energy systems, advanced fossil energy technologies, and production facilities for fuel-efficient vehicles. Although EPAct 05 authorized the LGP, the Federal Credit Reform Act of 1990 requires that Congress appropriate budget authority for loan guarantee program costs before loans can be made. In appropriating budget authority for the LGP, Congress would be not only authorizing DOE to issue the loan guarantees but also establishing policy by setting limits on the dollar amount of loans that can be guaranteed. Congress can also specify limits on the amount of LGP administrative …

Testimony issued by the Government Accountability Office with an abstract that begins "The Department of Homeland Security (DHS) is investing billions of dollars in its U.S. Visitor and Immigrant Status Indicator Technology (US-VISIT) program to collect, maintain, and share information on selected foreign nationals who enter and exit the United States. The program uses biometric identifiers (digital fingerscans and photographs) to screen people against watch lists and to verify that a visitor is the person who was issued a visa or other travel document. The program is also to biometrically confirm the individual's departure. For over 3 years, GAO has reported on US-VISIT capability deployments and shortfalls, as well as fundamental limitations in DHS's efforts to define and justify US-VISIT's future direction and to cost-effectively manage the delivery of program capabilities on time and within budget. GAO was asked to testify on (1) the status of the program's implementation and (2) the program's progress in addressing longstanding management weaknesses. Given where US-VISIT is today and the challenges and uncertainties associated with where it is going, GAO believes that DHS is long overdue in demonstrating that it is pursuing the right US-VISIT solution and that it is managing US-VISIT the right …

Testimony issued by the Government Accountability Office with an abstract that begins "GAO testified about the challenges involved in financing health care. GAO has been particularly concerned about the federal government's long-term fiscal sustainability and the contribution of health care spending to this troubling picture. For the past several years, we have consistently reported that in just a few decades, the government will face a serious fiscal imbalance driven by known demographic trends and escalating health care cost growth. Over the next several decades, growth in spending on federal retirement and health entitlements will encumber an escalating share of the government's resources. These entitlement programs primarily include Social Security, which provides, among other things, retirement income to individuals aged 62 and older; Medicare, which provides health care coverage primarily for individuals 65 and older; and Medicaid, which is a joint federal-state program providing health care and long-term care for low-income individuals. Congress's concern about the challenges involved in financing health care is consistent with the fact that certain spending pressures faced by Medicare and Medicaid are faced by all health care payers, including the Departments of Veterans Affairs (VA) and Defense, as well as private payers of health care. To …

Correspondence issued by the Government Accountability Office with an abstract that begins "More than a quarter of automobiles and about a third of light trucks (including sport utility vehicles, vans, and pickup trucks) on the roadways of the United States have one or more tires underinflated 8 pounds per square inch (psi) or more below the level recommended by the vehicle manufacturer, according to a report by the Department of Transportation's (DOT) National Highway Traffic Safety Administration (NHTSA). A decrease in tire pressure can be caused by poor maintenance, driving habits, punctures, road conditions, and the quality of material used in tire construction. According to tire experts, under normal driving conditions, air-filled tires can lose from 1 to 2 psi per month as air permeates through the tires. Vehicles with underinflated tires have had handling problems that caused crashes resulting in fatalities and injuries. In addition, the fuel economy of vehicles driving on underinflated tires is slightly lower. In response to a Congressional request for information on these issues, we addressed the following questions: (1) What is the impact of tire underinflation on safety and fuel economy, and what actions has the federal government taken to promote proper tire inflation? …

Testimony issued by the Government Accountability Office with an abstract that begins "In August 1997, Congress created the State Children's Health Insurance Program (SCHIP) with the goal of significantly reducing the number of low-income uninsured children, especially those who lived in families with incomes exceeding Medicaid eligibility requirements. Unlike Medicaid, SCHIP is not an entitlement to services for beneficiaries but a capped allotment to states. Congress provided a fixed amount--$40 billion from 1998 through 2007--to states with approved SCHIP plans. Funds are allocated to states annually. States have 3 years to use each year's allocation, after which unspent funds may be redistributed to states that have already spent all of that year's allocation. GAO's testimony addresses trends in SCHIP enrollment and the current composition of SCHIP programs across the states, states' spending experiences under SCHIP, and considerations GAO has identified for SCHIP reauthorization. GAO's testimony is based on its prior work; analysis of the Current Population Survey, a monthly survey conducted by the U.S. Census Bureau (2003-2005); information from states' annual SCHIP reports (2002-2005); and SCHIP enrollment and expenditure data from the Centers for Medicare & Medicaid Services (1998-2005)."

Correspondence issued by the Government Accountability Office with an abstract that begins "Section 1206 of the National Defense Authorization Act of 2006 established a new program that gives the Department of Defense (DOD) the authority to spend up to $200 million of its own appropriations to train and equip foreign militaries to undertake counterterrorism or stability operations. Department of State (State) and DOD officials have cited the importance of this program in building capacity among partner nations to help fight the global war on terror. Moreover, they believe that compared with traditional security assistance programs funded by State, Section 1206 assistance will provide greater flexibility to respond quickly to emerging threats and opportunities. However, some believe that such a program should be funded in the foreign affairs budget, which is administered by State, to ensure that the Secretary of State has the authority to manage foreign policy decisions and bilateral relationships. To address Congress's questions about the new Section 1206 security assistance program, we examined (1) what criteria State and DOD use to select recipient countries and types of assistance, (2) how State and DOD coordinate the formulation and approval of Section 1206 programs, and (3) how State and DOD …

Correspondence issued by the Government Accountability Office with an abstract that begins "The Department of Defense (DOD) operates a worldwide supply system, with the vast majority of the items being managed by the Defense Logistics Agency (DLA). Media reports in October 2005 raised concerns about the use of the prime vendor concept and the prices that DLA was paying for items acquired through a prime vendor, and the House Armed Services Committee held a hearing on the matter on November 9, 2005. As a result of the hearing, DLA officials recognized the need to improve management oversight and internal controls over the program, and they proposed a series of corrective actions. Under the prime vendor concept, DOD relies on a distributor of a commercial product line, who provides that product line and incidental services to customers in an assigned region or area of responsibility. Products or services are to be delivered within a specified period of time after order placement. The prime vendor provides the product either at the cost paid to obtain it or at a price agreed upon in advance with DLA plus a handling fee. The use of prime vendor contracts is governed by the Federal Acquisition …

Correspondence issued by the Government Accountability Office with an abstract that begins "In fiscal year 2006, the Department of Homeland Security (DHS) provided approximately $1.7 billion in federal funding to states, localities, and territories through its Homeland Security Grant Program (HSGP) to prevent, protect against, respond to, and recover from acts of terrorism or other catastrophic events. The Urban Areas Security Initiative (UASI) is a discretionary grant under this program, and since fiscal year 2003, Congress has directed DHS to target UASI funding to high-threat, high-density urban areas to assist in building capacity. To meet this requirement and inform funding decisions, DHS developed a method to estimate the relative risk of terrorist attacks to urban areas. From fiscal year 2003 through 2005, DHS used a number of risk indicators such as population density and threat to allocate UASI funds. UASI funding increased during this period from about $96 million to $830 million, while the number of urban areas that received grants grew from 7 to 43. In fiscal year 2006, DHS awarded approximately $711 million in UASI grants--a 14 percent reduction in funds from the previous year--while the number of eligible urban areas identified by the risk assessment decreased to …

Testimony issued by the Government Accountability Office with an abstract that begins "More Americans remaining in the workforce at older ages could lead to benefits at several levels. First, working longer will allow older workers to bolster their retirement savings. Second, hiring and retaining older workers will help employers deal with projected labor shortages. Third, older workers will contribute to economic growth and increase federal revenues, helping to defray some of the anticipated costs associated with increased claims on Social Security and Medicare. Despite all of these gains to be had, there are barriers to continued employment for older workers. In addition, some employers remain reluctant to engage and retain this group. It is in the nation's interest for people to work longer, which requires that barriers to continued work be removed sooner rather than later. This testimony highlights issues discussed at a recent forum GAO convened on engaging and retaining older workers, as well as prior GAO work. Forum participants included experts representing employers, business and union groups, advocates, researchers, actuaries, and federal agencies. These highlights do not necessarily represent the views of any one participant or the organizations that these participants represent, including GAO."

Correspondence issued by the Government Accountability Office with an abstract that begins "On December 5, 2006, we testified before the Senate Subcommittee on Federal Financial Management, Government Information, Federal Services, and International Security, Committee on Homeland Security and Governmental Affairs, at a hearing entitled, "An Assessment of Improper Payments Information Act of 2002." At the end of the hearing, Congress asked us to provide information regarding (1) barriers inhibiting agencies' efforts to prevent and reduce improper payments, (2) legislative reforms needed to facilitate agencies' efforts to prevent improper payments, and (3) suggested language to amend the Improper Payments Information Act of 2002 (IPIA) that would provide more complete disclosure and transparency of agencies' improper payments reporting."

Correspondence issued by the Government Accountability Office with an abstract that begins "In 1992, the United States began a unilateral moratorium on the underground testing of nuclear weapons. Prior to the moratorium, underground nuclear testing was a critical component for evaluating and certifying nuclear warheads. In 1993, the Department of Energy (DOE), at the direction of the President and the Congress, established the Stockpile Stewardship Program to increase understanding of the basic phenomena associated with nuclear weapons, provide better predictive understanding of the safety and reliability of weapons, and ensure a strong scientific and technical basis for future United States nuclear weapons policy objectives. The National Nuclear Security Administration (NNSA), a separately organized agency within DOE, is now responsible for carrying out the Stockpile Stewardship Program. In 1995, the President established an annual stockpile assessment and reporting requirement to help ensure that the nation's nuclear weapons remained safe and reliable without underground nuclear testing. Subsequently, the Congress enacted into law the requirement for an annual stockpile assessment (annual assessment) process in section 3141 of the National Defense Authorization Act for Fiscal Year 2003. Specifically, section 3141 requires that the Secretaries of Energy and Defense submit a package of reports on …

Correspondence issued by the Government Accountability Office with an abstract that begins "The Office of Special Counsel (OSC) is charged with safeguarding the merit system by protecting federal employees and applicants for employment from prohibited personnel practices, such as discrimination, nepotism, and retaliation against whistleblowing. An individual who feels that a prohibited personnel practice has occurred may file a claim with OSC, which OSC then investigates and on which it may seek corrective or disciplinary action through negotiation with agencies or prosecution of claims before the Merit Systems Protection Board. In addition, federal employees, former federal employees, and applicants for federal employment may also disclose to OSC alleged wrongdoing by federal employees (termed whistleblower disclosures), including violations of law, gross mismanagement, or abuse of authority. OSC also provides advisory opinions and enforces Hatch Act restrictions on the political activities of individuals employed by the federal and District of Columbia governments as well as certain state and local government employees in connection with programs financed by federal funds. OSC also prosecutes claims before the Merit Systems Protection Board on behalf of federal employees, former federal employees, and applicants for federal employment under the Uniformed Services Employment and Reemployment Rights Act of …

Correspondence issued by the Government Accountability Office with an abstract that begins "Since 2000, the United Nations (UN) has been developing a Capital Master Plan (CMP) to renovate its headquarters complex in New York City to bring it into compliance with current life safety and building codes. The planned renovation will also enable the UN to address technology and security needs. Since 2001, we have reported on the UN's efforts to develop the CMP. As we finalized our most recent report in November 2006, the UN Secretary-General released the latest progress report on the CMP and recommended that the UN General Assembly approve a scope, schedule, budget, and funding mechanism for the CMP. The Secretary-General's report also included an updated cost estimate of $1.88 billion for the project. This estimate for the CMP is about $128 million higher than the previous estimate, which was released in 2005. As the host country and largest contributor to the UN, the United States continues to have a significant interest in the success of the renovation. In this report, we (1) analyze the changes in the latest cost estimate and (2) describe the latest decisions the UN General Assembly made in regard to the …

Correspondence issued by the Government Accountability Office with an abstract that begins "The fall 2001 anthrax attacks revealed gaps in the nation's preparedness for public health emergencies resulting from bioterrorism. Among the tools needed for responding to such emergencies are vaccines to prevent the spread of disease; tests for rapid diagnosis; and therapeutics, including drugs, for treatment. Because the pathogens that could be used in bioterrorist attacks carry the risk of significant morbidity or are potentially lethal, biological research aimed at providing the tools needed to combat these agents is required to be conducted in facilities known as biocontainment laboratories. These facilities are to be designed, constructed, and operated in a manner to prevent accidental release of infectious or hazardous agents within the laboratory and to protect laboratory workers and the environment external to the laboratory, including the community, from exposure to these research materials. The National Institute of Allergy and Infectious Diseases (NIAID) is the primary institute at the Department of Health and Human Services' (HHS) National Institutes of Health (NIH) that is responsible for research on pathogens that could be used in a bioterrorist attack and for research on emerging infectious disease pathogens. The Centers for Disease Control …

Testimony issued by the Government Accountability Office with an abstract that begins "In April 2004, President Bush called for the Department of Health and Human Services (HHS) to develop and implement a strategic plan to guide the nationwide implementation of health IT. The plan is to recommend methods to ensure the privacy of electronic health information. GAO was asked to summarize its report that is being released today. The report describes the steps HHS is taking to ensure privacy protection as part of its national health IT strategy and identifies challenges associated with protecting electronic health information exchanged within a nationwide health information network."

Testimony issued by the Government Accountability Office with an abstract that begins "The U.S. insular area of the Commonwealth of the Northern Mariana Islands (CNMI) is a self-governing commonwealth of the United States that comprises 14 islands in the North Pacific. In a December 2006 report--U.S. Insular Areas: Economic, Fiscal, and Financial Accountability Challenges (GAO-07-119)--regarding four insular areas including CNMI, GAO identified and reported the following: (1) economic challenges, including the effect of changing tax and trade laws on their economies; (2) fiscal condition; and (3) financial accountability, including compliance with the Single Audit Act. The Chairman of the Senate Committee on Energy and Natural Resources, which requested the December 2006 report, asked GAO to present and discuss the results as they pertain to CNMI. Our summary and conclusions are based on our work performed for our December 2006 report on U.S. insular areas. For this testimony we also had available CNMI's fiscal year 2005 audited financial statements, which we have included in our review, along with some recent developments in fiscal year 2006."

Testimony issued by the Government Accountability Office with an abstract that begins "Several federal programs help pay for or reduce the costs of prescription drugs for eligible individuals and entities. Three examples are the Medicaid drug rebate program, part of the joint federal-state Medicaid program that finances medical services for certain low-income people; the 340B drug pricing program, which provides discounted drug prices to certain eligible entities such as community health centers; and the Medicare Part D program, which provides a Medicare drug benefit for the elderly and certain disabled people. The price information drug manufacturers report under these federal programs affects related federal spending. Spending is also affected by the extent to which federal oversight ensures the accuracy of this information. GAO was asked to provide information related to the oversight of prescription drug pricing practices that affect these federal programs. This testimony focuses on the oversight of drug pricing related to the three programs and the implications for future congressional oversight. This testimony is based on recent GAO reports examining these programs and related work by the Department of Health and Human Services Office of Inspector General and others."

Testimony issued by the Government Accountability Office with an abstract that begins "The Department of Defense (DOD) has relied extensively on contractors to undertake major reconstruction projects and provide support to its deployed forces, but these efforts have not always achieved desired outcomes. Further, the Iraqi government must be able to reduce violence, sustain reconstruction progress, improve basic services, and make a positive difference in the daily lives of the Iraqi people. This statement discusses (1) factors affecting DOD's ability to promote successful acquisition outcomes on its contracts for reconstruction and for support to deployed forces in Iraq, (2) the deteriorating security situation and the capabilities of the Iraqi security forces, and (3) issues affecting the Iraqi government's ability to support and sustain future reconstruction progress. The testimony is based upon our work on Iraq reconstruction and stabilization efforts, DOD contracting activities, and DOD's use of support contractors spanning several years. This work was conducted in accordance with generally accepted government auditing standards."

Testimony issued by the Government Accountability Office with an abstract that begins "The Freedom of Information Act (FOIA) establishes that federal agencies must provide the public with access to government information, enabling them to learn about government operations and decisions. To help ensure proper implementation, the act requires that agencies annually report specific information about their FOIA operations, such as numbers of requests received and processed and median processing times. In addition, a recent Executive Order directs agencies to develop plans to improve their FOIA operations, including decreasing backlogs. GAO was asked to testify on the results of its study on FOIA processing and agencies' improvement plans. The draft report on the study is currently out for comment at the agencies involved (and is thus subject to change). For the study, GAO reviewed status and trends of FOIA processing at 25 major agencies as reflected in annual reports, as well as the extent to which improvement plans contain the elements emphasized by the Executive Order. To do so, GAO analyzed the 25 agencies' annual reports and improvement plans."

Testimony issued by the Government Accountability Office with an abstract that begins "Each year, about 76 million people contract a foodborne illness in the United States; about 325,000 require hospitalization; and about 5,000 die. While the recent E. coli outbreaks highlighted the risks posed by accidental contamination, the attacks of September 11, 2001, heightened awareness that the food supply could also be vulnerable to deliberate contamination. This testimony focuses on the (1) role that GAO's high-risk series can play in raising the priority and visibility of the need to transform federal oversight of food safety, (2) fragmented nature of federal oversight of food safety, and (3) need to address federal oversight of food safety as a 21st century challenge. This work is based on previously issued reports."

Testimony issued by the Government Accountability Office with an abstract that begins "In the 1990s, states sued major tobacco companies to obtain reimbursement for health impairments caused by the public's use of tobacco. In 1998, four of the nation's largest tobacco companies signed a Master Settlement Agreement, agreeing to make annual payments to 46 states in perpetuity as reimbursement for past tobacco-related health care costs. Some states have arranged to receive advance proceeds based on the amounts that tobacco companies owe by issuing bonds backed by future payments. This testimony discusses (1) the amounts of tobacco settlement payments that the states received from fiscal years 2000 through 2005, the most recent year for which GAO has actual data, and (2) the states' allocations of these payments. We also include states' projected fiscal year 2006 allocations. The Farm Security and Rural Investment Act of 2002 required GAO to report annually, through fiscal year 2006, on how states used the payments made by tobacco companies. GAO based this testimony on five annual surveys of these 46 states' Master Settlement Agreement payments and how they allocated these payments."

Testimony issued by the Government Accountability Office with an abstract that begins "At the last Capitol Visitor Center (CVC) hearing, GAO reported that our assessment of the project's schedule and expected cost at completion was somewhat constrained because the CVC team was still analyzing the impact on the project's schedule and cost of recently identified changes required for certain components of the fire protection and security systems. The impact of these changes on the project is not yet fully known. Therefore, GAO could not thoroughly assess the project's schedule or estimated cost at completion and are basing our views on the information available as of February 5, 2007, including the Architect Of the Capitol's (AOC) December 2006 schedule. To assist the Subcommittee on the Legislative Branch, House Committee on Appropriations in monitoring progress on the CVC project, GAO's remarks will focus on (1) the AOC construction progress since the last CVC hearing on November 15, 2006; and (2) the project's expected cost at completion and status of funding."

Testimony issued by the Government Accountability Office with an abstract that begins "The Department of the Interior is responsible for managing much of the nation's vast natural resources. Its agencies implement an array of programs intended to protect these precious resources for future generations while also allowing certain uses of them, such as oil and gas development and recreation. In some cases, Interior is authorized to collect royalties and fees for these uses. Over the years, GAO has reported on challenges facing Interior as it implements its programs. In addition to basic program management issues, the department faces difficult choices in balancing its many responsibilities, and in improving the condition of the nation's natural resources and the department's infrastructure, in light of the federal deficit and long-term fiscal challenges facing the nation. This testimony highlights some of the major management challenges facing Interior today."