Other written product issued by the General Accounting Office with an abstract that begins "This document provides guidance to federal entities on the implementation of Statement of Federal Financial Accounting Standards No. 7, Accounting for Revenue and Other Financing Sources and Concepts for Reconciling Budgetary and Financial Accounting."

A letter report issued by the General Accounting Office with an abstract that begins "Concerned that Title I of the Elementary and Secondary Education Act (ESEA) had not significantly improving the educational achievements of children at risk, Congress mandated major changes in 1994. States were required to adopt or develop challenging curriculum content and performance standards, assessments aligned with content standards, and accountability systems to measure progress in raising student achievement. In return, states were given greater flexibility in the use of Title I and other federal funds. The No Child Left Behind Act of 2001 augments the assessment and accountability requirements that states must implement and increases the stakes for schools that fail to make adequate progress. The 1994 legislation required states to comply with the requirements by January 2001 but allowed the Department of Education to extend that deadline. Education has granted waivers to 30 states to give them more time to meet all requirements. If states fail to meet the extended timeliness, they are subject to the withholding of some Title I administrative funds. Title I directors indicated that a state's ability to meet the 1994 requirements improved when both state leaders and state agency staff made …

Testimony issued by the General Accounting Office with an abstract that begins "Federal, state, and local governments share responsibility for terrorist attacks. However, local government, including police and fire departments, emergency medical personnel, and public health agencies, is typically the first responder to an incident. The federal government historically has provided leadership, training, and funding assistance. In the aftermath of September 11, for instance, one-quarter of the $40 billion Emergency Response Fund was earmarked for homeland security, including enhancing state and local government preparedness. Because the national security threat is diffuse and the challenge is highly intergovernmental, national policymakers must formulate strategies with a firm understanding of the interests, capacity, and challenges facing those governments. The development of a national strategy will improve national preparedness and enhance partnerships between federal, state, and local governments. The creation of the Office of Homeland Security is an important and potentially significant first step. The Office of Homeland Security's strategic plan should (1) define and clarify the appropriate roles and responsibilities of federal, state, and local entities; (2) establish goals and performance measures to guide the nation's preparedness efforts; and (3) carefully choose the most appropriate tools of government to implement the national strategy …

A letter report issued by the General Accounting Office with an abstract that begins "The Metropolitan Area Acquisition (MAA) program provides local telecommunications services to federal agencies in certain U.S. cities. The General Services Administration (GSA) began the program in 1997 to achieve immediate, substantial, and sustained price reductions for local telecommunications for agencies; to expand their choices of high-quality services; and to encourage cross-agency sharing of resources. Service providers that are awarded contracts under the program are allowed to compete for GSA's FTS2001 long distance service contracts, so that federal agencies may potentially acquire end-to-end local and long distance telecommunications services from one source. Only five of the 19 metropolitan areas that were scheduled to switch from existing services to MAA services by or before March 2002 have done so. Although the program was intended to take advantage of emerging competition in the local telecommunications market, it has been beset by implementation challenges, including access and use of building riser cabling, the transfer of local numbers between service providers, and a contractor's financial problems. On top of the cost of the contract services, GSA charges customer agencies fees that range from about nine to 97 percent or from $1.20 …

Correspondence issued by the General Accounting Office with an abstract that begins "Last year, GAO reported that the demilitarization liability for excess ammunition was not reflected in the Department of Defense's (DOD) financial statements although required by federal financial accounting standards. The Army, as the single manager for conventional ammunition, calculated a liability of $1.2 billion and prepared a voucher recognizing this amount. Although consistent with GAO's recommendation that DOD include the total liability for demilitarizing excess ammunition in its annual financial statements, this amount does not reflect the full extent of future costs. Specifically, the Army does not recognize a liability for costs associated with the demilitarization of (1) excess ammunition overseas or (2) excess Army-owned war reserve ammunition, excess retail ammunition, and excess ammunition not stored at an Army installation. GAO found that the total liability that should be reflected in fiscal year 2002 financial statements could amount to $3 billion, or $1.8 billion more than the Army's calculation. The Army needs to submit an additional voucher and include in its and DOD's fiscal year 2002 consolidated balance sheets the future liability associated with the demilitarization of excess Army ammunition at overseas and military storage locations."

A chapter report issued by the General Accounting Office with an abstract that begins "Extensive markup language (XML) is a flexible, nonproprietary set of standards designed to facilitate the exchange of information among disparate computer systems using Internet protocols. Although XML's technical standards, such as specifications for tagging, exchanging, and displaying information, have largely been worked out by commercial standards setting organizations and are in use, equally important business standards are not as mature and may complicate near-term implementation. Standards are not yet complete for (1) identifying potential business partners for transactions, (2) exchanging precise technical information about the nature of proposed transactions that partners can agree to, and (3) executing agreed-upon transactions in a formal, legally binding manner. The federal government faces many challenges as it attempts to gain the most from XML's potential. First, no explicit governmentwide strategy for XML adoption has been defined to guide agency implementation efforts and ensure that agency enterprise architectures address XML incorporation. Second, federal agencies have not yet identified and consolidated their needs for effective representation before key standards setting bodies. Third, the government has yet to establish a registry of government-unique XML data structures for systems developers to consult when building …

A letter report issued by the General Accounting Office with an abstract that begins "The Department of Justice (DOJ) recovered more than $1.2 billion in health care fraud cases in fiscal year 2001. The False Claims Act bolstered DOJ's recoveries and enabled the government to seek damages and penalties against providers who knowingly submitted fraudulent bills to Medicare, Medicaid, or other government programs. In the late 1990s, industry representatives voiced concerns that DOJ had over zealously pursued hospitals, conducted unwarranted investigations, and demanded large penalties for unintentional errors. In response, DOJ issued guidance that emphasized the importance of using the act in a fair and even-handed manner and introduced new procedures for national initiatives. DOJ requires all U.S. Attorneys' Offices that pursue civil health care fraud to annually certify their compliance with the guidance. DOJ appears to be conducting its three national initiatives consistent with the guidance. U.S. Attorneys' Offices that GAO visited had coordinated their activities with the national initiative working groups and, as the guidance requires, took each hospital's unique circumstances into consideration in resolving these matters. Representatives from the American Hospital Association and the state hospital associations GAO spoke to were generally satisfied that U.S. Attorneys' Offices …

A letter report issued by the General Accounting Office with an abstract that begins "Through military base realignment and closures rounds in 1988, 1991, 1993, and 1995, the Pentagon significantly reduced its domestic infrastructure and freed up needed dollars for high-priority programs. By the end of last round in fiscal year 2001, the Department of Defense (DOD) had closed or realigned hundreds of bases, generated savings, and transferred unneeded property to other users. The communities surrounding the former bases continue to recover economically from the closures. Congress recently authorized another round of base realignments and closures beginning in 2005. DOD has saved $16.7 billion through fiscal year 2001, and expects to save $6.6 billion in annually in future years. Although DOD plans to transfer nearly all of the 518,500 acres of unneeded base property to federal and nonfederal users, it has completed only some of the transfers. Environmental cleanup is the primary impediment to conveying the remaining property titles. The military services are using early transfer authority and leasing to make property available for reuse sooner. Although successful redevelopment of base property plays a key role in the economic recovery of neighboring communities, broader regional economic growth also is important …

A letter report issued by the General Accounting Office with an abstract that begins "The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 ended the Aid to Families with Dependent Children program and created the Temporary Assistance for Needy Families (TANF) block grant to states. TANF emphasizes work and responsibility over dependence on government benefits. It also requires states to maintain a historical level of spending on welfare-related programs. The focus of welfare spending has shifted from monthly cash payments to services. Between fiscal years 1995 and 2000, state expenditures for cash assistance decreased from 71 to 43 percent of total welfare spending. In fiscal year 2000, 26 states used more than half of their TANF and state maintenance-of-effort (MOE) expenditures on services other than cash assistance. In fiscal year 1995, no state spent more than 50 percent of its welfare dollars on these services. In addition to providing benefits and services to families included in the welfare caseload, states are also using TANF/MOE funds to provide services to other low-income families. GAO estimates that at least 46 percent more families than counted in TANF caseload reports are receiving services funded, at least, in part, by TANF/MOE funds. The …

A letter report issued by the General Accounting Office with an abstract that begins "The Workforce Investment Act of 1998 substantially changed the way youth workforce development services are configured and delivered. The act requires states and localities to create a more comprehensive workforce system for development needs. The act promotes partnerships among diverse programs and community representatives through participation on newly created state and local workforce investment boards and youth councils. GAO found that most youth councils nationwide included the required members and nearly all councils were active by July 2000. Local boards competitively chose youth service providers and developed strategies for one-stop centers. Most boards reported that services were provided through contracted service providers rather than one-stop centers. However, local boards had difficulty getting parents and youth to participate on youth councils. Some local areas found it difficult to identify and select youth service providers because of low response to requests for proposals. Getting youth to visit the typically adult-focused one-stop centers was also difficult. Youth councils linked with the education community by including representatives of local school districts and existing school-board career programs in their membership or as youth service providers. Moreover, secondary and postsecondary schools contracted …

Correspondence issued by the General Accounting Office with an abstract that begins "This report reviews cooperative research and development agreements (CRADA) at the Army Research Laboratory and the Army Medical Research Institute of Infectious Diseases to determine whether the laboratories complied with export control laws. GAO found that the Army needs to clarify its guidance on technology transfers to ensure compliance with U.S. export control laws during the management review of potential CRADA under Army Regulation 70-57. However, the regulation does not require that laboratories consult with the Office of the United States Trade Representative when entering into a CRADA. A committee of legal and management officials from various Army commands is now revising Army Regulation 70-57."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the Internal Revenue Service (IRS) fiscal year 2003 budget request for the 2002 tax filing season. GAO found that IRS's plans for hiring and redirecting staff may be optimistic because budgets are prepared so far in advance of the fiscal year involved. IRS assumed (1) labor and nonlabor savings of 2,287 staff years and $157.5 million and (2) additional savings of $38.5 million from better business practices. IRS's justification does not always adequately link the resources being requested and the agency's performance goals. Although IRS provided adequate support to justify the $450 million request for its multiyear capital account for business systems modernization, it did not adequately support $1.63 billion of the $1.68 billion requested for its information systems. In the area of agency performance, GAO found that IRS has generally processed returns smoothly and seen continued growth in electronic filing. The one exception to smooth processing has been the large number of errors related to the rate reduction credit. IRS has had to correct millions of returns due to the credit, and taxpayers' call about the credit have greatly increased the demand on IRS's …

A letter report issued by the General Accounting Office with an abstract that begins "Although pensions are an important source of income for many retirees, millions of workers lack individual pension coverage. Only half of the nation's workers have been covered by private employer-sponsored pensions since the 1970s. Traditional reforms to the voluntary, single-employer-based pension system have limited potential to expand pension coverage and improve worker benefits. These pension reforms have concentrated mainly on improving tax incentives and reducing the regulatory burden on small employers. Furthermore, efforts to increase retirement savings by restricting the use of lump-sum distributions could limit worker participation in and contributions to pension plans. Three categories of reform--pooled employer reforms, universal access reforms, and universal participation reforms--go beyond the voluntary, single-employer private pension system. Pooled employer reforms seek to increase the number of firms offering pension coverage by creating centralized third-party administration and increasing pension plan portability. Universal access reforms seek to boost savings by offering payroll-based accounts, albeit without mandating employer contributions. Universal participation reforms would mandate pension availability and participation for all workers, similar to the existing Social Security system."

Testimony issued by the General Accounting Office with an abstract that begins "In the wake of the Enron collapse and the proliferation of earnings restatements and pro forma earnings assertions by other companies, questions are being raised about the soundness of private sector financial reporting, auditor independence, and corporate governance. In addressing these issues, the government's role could range from direct intervention to encouraging non-governmental and private-sector entities to adopt practices that would strengthen public confidence. GAO believes that Congress should consider a holistic approach that takes into account the many players and interrelated issues that brought about the Enron situation."

Testimony issued by the General Accounting Office with an abstract that begins "As in the past four years, GAO was unable to express an opinion on the federal government's consolidated financial statements for fiscal years 2000 and 2001 because of material weaknesses in internal control and accounting and reporting issues. These conditions prevented GAO from providing Congress and American citizens with an opinion as to whether the consolidated financial statements are fairly stated in conformity with U.S. generally accepted accounting principles. Until these problems are adequately addressed, the government will continue to have difficulty (1) reporting its assets, liabilities, and costs; (2) adequately measuring the full cost and financial performance of programs and effectively manage related operations; and (3) adequately safeguarding significant assets and and properly recording transactions."

Testimony issued by the General Accounting Office with an abstract that begins "The Department of Education has a history of financial management problems, including serious internal control weaknesses, that have affected the Department's ability to provide reliable financial information on its operations. GAO found that significant internal control weaknesses in payment processes and poor physical control over its computer assets led to fraud, improper payments, and lost assets. GAO also identified instances of grant and loan fraud and pervasive control breakdowns and improper payments in other areas, particularly involving purchasing cards."

Testimony issued by the General Accounting Office with an abstract that begins "GAO discussed the condition of culverts on fish-bearing streams in Oregon and Washington and the federal efforts to identify and restore culverts that are impeding fish passage on Bureau of Land Management (BLM) and Forest Service lands. This testimony is based on a November 2001 report (GAO-02-136), which described (1) the number of culverts that may impede fish passage on BLM and Forest Service lands in Oregon and Washington, (2) the factors affecting the agencies' ability to restore passage through culverts acting as barrier culverts, and (3) the results of the agencies' efforts to restore fish passage."

A letter report issued by the General Accounting Office with an abstract that begins "Preventive medicine, including immunizations for many diseases and screening for some types of cancer, holds the promise to extend and improve the quality of life for millions of Americans. Medicare now covers three preventive services for immunizations and three for screenings, and the Centers for Medicare and Medicaid Services (CMS) sponsors "interventions" to increase the use of preventive services. GAO found that the use of preventive services varies widely by service, state, ethnic group, income, and education. The greatest differences among ethnic groups were for immunization rates. Cancer screening rates tended to differ according to income and education level. CMS pays for interventions that promote breast cancer screenings and pneumonia and flu shots. Most of the techniques being used, such as reminder systems that medical offices can use to alert doctors and patients to needed cancer screenings, have been effective. CMS is evaluating what its current efforts have accomplished and expects the results later this year."

Correspondence issued by the General Accounting Office with an abstract that begins "The National Aeronautics and Space Administration's (NASA) authorization act for fiscal year 2000 limits expenditures for space station development to $25 billion and for shuttle launches to $17.7 billion. The act also requires NASA to (1) account for and report amounts obligated to date against the cost limits, (2) identify the amounts needed for future development and completion of the space station, and (3) arrange for GAO to verify the accounting within 60 days after submission of the budget request. Last year, GAO reported that NASA, as part of its fiscal year 2002 budget request, did not comply with the act's requirement to use obligations as its basis for reporting against the cost limits but instead used budget authority. The agency was also unable to provide detailed support for the amounts obligated against the limits for evaluation within the 60 days, but said that it could have provided the information if given more time. After a protracted effort, NASA has acknowledged that its systems cannot provide the data needed to support amounts obligated against the limits. NASA's inability to provide detailed data is due to its lack of …

Testimony issued by the General Accounting Office with an abstract that begins "The Temporary Assistance for Needy Families (TANF) block grant makes $16.5 billion available to states each year, regardless of changes in the number of people receiving benefits. To qualify for their full TANF allotments, states must spend a certain amount of state money, referred to as maintenance-of-effort funds. As states implemented work-focused reforms during the strong economy of the 1990s, welfare caseloads dropped by more than 50 percent. GAO found that most former welfare recipients were employed at some point after leaving welfare, typically with earnings that did not raise them above the poverty level. Under welfare reform, spending shifted from monthly cash payments to services, such as child care and transportation. This shift reflects two key features of reform. First, many states have increased spending to engage more welfare families in work-related activities and to provide more intensive services. Second, many states have increased their efforts to provide services to low-income families not receiving welfare. Services for these families include child care, case management, and job retention and advancement services for families who have recently left welfare for employment as well as other low-income working families. Although …

Testimony issued by the General Accounting Office with an abstract that begins "The General Services Administration's (GSA) Federal Supply Service (FSS) and Federal Technology Service (FTS) help agencies to purchase telephone and computer systems, motor vehicles, travel, and everyday supplies valued at more than $30 billion annually. FSS and FTS take different approaches to filling agency customers' requirements but, in the information technology area, they provide similar goods and services and deal with many of the same vendors. Although overlapping programs with similar services would appear to create the potential for inefficiencies, GSA has little hard data with which to assess the situation. GSA has begun to provide more useful information on the performance of FSS and FTS and to identify more efficient operations. If successful, these initiatives also may provide a road map for assessing the performance of other interagency purchasing programs."

Testimony issued by the General Accounting Office with an abstract that begins "The Environmental Protection Agency (EPA) conducts an infrastructure needs assessment every four years to estimate the future capital investment needs of local drinking water systems. In its most recent survey, EPA estimated that nearly $151 billion will be needed during the next 20 years to repair, replace, and upgrade the nation's 55,000 community water systems. The needs assessment survey serves as the basis for EPA's grants to the states under the drinking water revolving fund program. To ensure that it collected valid data to estimate drinking water infrastructure needs EPA conducted site visits to selected systems and had states review supporting documentation. However, EPA cannot tell how closely the estimates reflect actual state-by-state needs because it did not calculate the precision of estimates. GAO found that 31 out of 50 states surveyed established revolving loan funds programs to assist disadvantaged communities. In fiscal years 1991 through 2000, nine federal agencies made available about $44 billion in grants, loans, and loan guarantees for drinking water and wastewater capital improvements."

A letter report issued by the General Accounting Office with an abstract that begins "Chemical testing kits from World War II containing diluted mustard gas and other chemicals have been discovered on Guam. The Department of Defense (DOD) is responsible for identifying and cleaning up contaminated military sites throughout the United States and its territories. In the mid-1990s, DOD scaled back its identification efforts nationally and focused its attention on Guam. It now relies on referrals from the Guam Environmental Protection Agency and on incidental discovery during construction and other operational activities. Stakeholders had three concerns about the Army Corps of Engineers' efforts to identify and address contamination on former defense sites. First, they were uncertain about the Corps' process for adding potentially contaminated locations to its Guam inventory. Second, some locations containing debris, such as metal and tires, were excluded even though the waste was caused by DOD and could place a financial burden on the owner to remove it. Third, stakeholders were concerned about the slow pace of funding for the program. Between fiscal years 1984 and 2000, only four percent of the total expected cost of cleaning up these locations had been funded in Guam, compared with …

Testimony issued by the General Accounting Office with an abstract that begins "In the aftermath of the September 11 terrorist attacks, the Administration took several steps to strengthen homeland security, including the creation of an Office of Homeland Security (OHS). The success of a homeland security strategy requires all levels of government and the private sector to communicate and cooperate with one another. The federal government must formulate realistic budget and resource plans to support the implementation of an efficient and effective homeland security program. A fundamental review of existing programs and operations can create the necessary fiscal flexibility by weeding out out-dated, poorly targeted, or inefficient programs. Although Congress called upon GAO to evaluate the effectiveness of OHS programs, GAO has experienced difficulty in gaining access to this information."