Testimony issued by the General Accounting Office with an abstract that begins "The Air Force launched an acquisition program to develop and produce a revolutionary laser weapon system, known as the Airborne Laser, in 1996. Being developed for installation in a modified Boeing 747 aircraft, it is intended to destroy enemy ballistic missiles almost immediately after their launch. The Air Force originally estimated development costs at $2.5 billion and projected fielding of the system in 2006. However, by August 2001, the Air Force determined that the development cost estimate rose 50 percent to $3.7 billion, and the fielding date slipped to 2010. The Department of Defense transferred responsibility for the Airborne Laser in October 2001 to the Ballistic Missile Defense Organization. Subsequently, the Defense Secretary designated the Ballistic Missile Defense Organization as the Missile Defense Agency and granted the agency expanded responsibility and authority. The Air Force was unable to meet the Airborne Laser's original cost and schedule goals because it did not fully understand the level of effort that would be required to develop the critical system technology needed to meet the user's requirements. The Missile Defense Agency's new strategy for developing the Airborne Laser incorporates some knowledge-based practices …

Testimony issued by the General Accounting Office with an abstract that begins "The Environmental Protection Agency's (EPA) hazardous waste ombudsman was first established within the Office of Solid Waste and Emergency Response as a result of the 1984 amendments to the Resource Conservation and Recovery Act. Over time, EPA expanded the national ombudsman's jurisdiction to include Superfund and other hazardous waste programs managed by the Office of Solid Waste and Emergency Response, and, by March 1996, EPA had designated ombudsmen in each of its 10 regional offices. Although the national ombudsman's activities ranged from providing information to investigating the merits of complaints, in recent years, the ombudsman played an increasingly prominent role through his investigations of citizen complaints. Pending legislation would reauthorize an office of the ombudsman within EPA. In November 2001, the EPA Administrator announced that the national ombudsman would be relocated from the Office of Solid Waste and Emergency Response to the Office of Inspector General (OIG) and would address concerns across the spectrum of EPA programs. Although there are no federal requirements or standards specific to the operation of ombudsman offices, several professional organizations have published standards of practice relevant to ombudsmen who deal with inquiries from …

Testimony issued by the General Accounting Office with an abstract that begins "Title III of the proposed Department of Homeland Security legislation would task the new department with developing national policy and coordinating the federal government's research and development efforts for responding to chemical, biological, radiological, and nuclear threats. It would also transfer to the new department responsibility for certain research and development programs and other activities, including those of the Department of Energy (DOE). If properly implemented, this proposed legislation could lead to a more efficient, effective and coordinated research effort that would provide technology to protect our people, borders, and critical infrastructure. However, the proposed legislation does not specify that a critical role of the new department will be to establish collaborative relationships with programs at all levels of government and to develop a strategic plan for research and development to implement the national policy it is charged with developing. In addition, the proposed legislation is not clear on the role of the new department in setting standards for the performance and interoperability of new technologies so that users can be confident that the technologies they are purchasing will perform as intended. Some of the proposed transfers of …

Testimony issued by the General Accounting Office with an abstract that begins "In fiscal year 2001, the Army had 430,000 individually billed travel card accounts, and about $619 million in related charges. Most Army cardholders properly used their travel cards and promptly paid amounts owed. However, the Army's delinquency rate is higher than any other Department of Defense (DOD) component or executive branch agency. GAO also identified numerous instances of potentially fraudulent and abusive activity related to the travel cards. During fiscal year 2001, at least 200 Army employees wrote three or more nonsufficient funds or "bounced" checks to Bank of America as payment for their travel bills--potentially fraudulent acts. GAO found little evidence of documented disciplinary action against Army personnel who misused the card, or that Army travel program managers or supervisors were even aware that travel cards were being used for personal use. For fiscal year 2001, the Army had significant breakdowns in key internal controls over individually billed travel cards that stemmed from a weak overall environment, flawed policies and procedures, and a lack of adherence to valid policies and procedures. These breakdowns contributed to the significant delinquencies and charge-offs of Army employee account balances and potentially …

Testimony issued by the General Accounting Office with an abstract that begins "Since the Disability Insurance (DI) and Supplemental Security Income (SSI) programs began, much has changed and continues to change in medicine, technology, the economy, and societal views and expectations of people with disabilities. GAO found that scientific advances, changes in the nature of work, and social changes have generally enhanced the potential for people with disabilities to work. Medical advances, such as organ transplantation, and assistive technologies, such as advances in wheelchair design, have given more independence to some individuals. At the same time, a service- and knowledge-based economy has opened new opportunities for people with disabilities, and societal changes have fostered the expectation that people with disabilities can work and have the right to work. GAO further found that DI and SSI disability criteria have not kept pace with these advances and changes. Depending on the claimant's impairment, decisions about eligibility benefits can be based on both medical and labor market criteria. Finally, some steps to incorporate these advances and changes can be taken within the existing programs' design, but some would require more fundamental changes."

Testimony issued by the General Accounting Office with an abstract that begins "The challenges posed by homeland security exceed the capacity and authority of any one level of government. Protecting the nation against these threats calls for a truly integrated approach, bringing together the resources of all levels of government. The proposed Department of Homeland Security will have a central role in efforts to enhance homeland security. The proposed consolidation of homeland security programs has the potential to reduce fragmentation, improve coordination, and clarify roles and responsibilities. However, formation of a department should not be considered a replacement for the timely issuance of a national homeland security strategy to guide implementation of the complex mission of the department. Appropriate roles and responsibilities within and between the government and private sector need to be clarified. New threats are prompting a reassessment and shifting of long-standing roles and responsibilities, but these shifts are being considered on a piecemeal and ad hoc basis without benefit of an overarching framework and criteria. A national strategy could provide guidance by more systematically identifying the unique capacities and resources at each level of government to enhance homeland security and by providing increased accountability within the intergovernmental …

Testimony issued by the General Accounting Office with an abstract that begins "This testimony summarizes previous GAO work that identified gaps in information needed to reconcile Individual Indian Moneys (IIM) trust accounts, and the rationale that led GAO to suggest that the Department of the Interior seek alternatives to reconciliation, such as a negotiated agreement. Congress established an Indian trust fund account reconciliation requirement in the Supplemental Appropriations Act of 1987 in response to tribal concerns that (1) Interior had not consistently provided them with statements on their account balances, (2) their trust fund accounts had never been reconciled, and (3) Interior planned to contract with a third party for management of trust fund accounts. There are many obstacles that will complicate Interior's ability to document the amount and source of funds deposited to, managed in, and disbursed from their IIM accounts. Interior's July 2002 report enumerates among those obstacles known discrepancies in the balances, at the trust fund level, reported by Treasury and Interior, as well as the potential for (1) errors in the electronic accounting system data, (2) missing paper transaction records, and (3) missing land ownership information and revenue instruments."

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 "Since its inception, the Transition Assistance Program has served more than one million separating and retiring military personnel through the coordinated efforts of the Departments of Defense, Transportation, Labor (DOL), and Veterans Affairs. In fiscal year 2001, the military branches and DOL spent $47.5 million to provide transition assistance to 222,000 separating and retiring service members. Although each branch provides required preparation counseling and offers transition assistance workshops to help service members transition to civilian life, not all eligible service members receive transition assistance. Because they have considerable flexibility in designing their programs, transition assistance varies in content and delivery across the military branches. In addition, service members experienced differences in access to transition assistance depending on their unique circumstances. Isolating the impact of transition assistance on employment, education, and other outcomes is difficult because of data inadequacies and methodological challenges."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses federal agency processes for approval of state information technology (IT) projects supporting state-administered federal human services programs. Federal approval and funding processes for state IT development and acquisition projects for the Child Support Enforcement, Child Welfare, and Food Stamps programs require the establishment of federal funding participation rates, the documentation that states must submit, and the time frames in which the federal agency must respond to the request. Assessment of the federal approval and funding process requires complete and reliable data that track a request from agency receipt until the agency finally approves or disapproves the request. However, such information is not readily available and the process cannot be thoroughly assessed because (1) the system used by the Administration for Children and Families (ACF) and The Centers for Medicare and Medicaid Services (CMS) headquarters to manage the approval process does not track the life cycle of a request and (2) the Department of Agriculture's Food and Nutrition Services (FNS) and CMS regional offices do not have a central tracking system. However, in a vast majority of cases, agencies responded to states' IT planning and acquisition …

Testimony issued by the General Accounting Office with an abstract that begins "The challenges posed by homeland security exceed the capacity and authority of any one level of government. Protecting the nation against these threats calls for a truly integrated approach, bringing together the resources of all levels of government. The proposed Department of Homeland Security will have a central role in efforts to enhance homeland security. The proposed consolidation of homeland security programs has the potential to reduce fragmentation, improve coordination, and clarify roles and responsibilities. However, formation of a department should not be considered a replacement for the timely issuance of a national homeland security strategy to guide implementation of the complex mission of the department. Appropriate roles and responsibilities within and between the government and private sector need to be clarified. New threats are prompting a reassessment and shifting of long-standing roles and responsibilities, but these shifts are being considered on a piecemeal and ad hoc basis without benefit of an overarching framework and criteria. A national strategy could provide guidance by more systematically identifying the unique capacities and resources at each level of government to enhance homeland security and by providing increased accountability within the intergovernmental …

Testimony issued by the General Accounting Office with an abstract that begins "The challenges posed by homeland security exceed the capacity and authority of any one level of government. Protecting the nation against these threats calls for a truly integrated approach, bringing together the resources of all levels of government. The proposed Department of Homeland Security will have a central role in efforts to enhance homeland security. The proposed consolidation of homeland security programs has the potential to reduce fragmentation, improve coordination, and clarify roles and responsibilities. However, formation of a department should not be considered a replacement for the timely issuance of a national homeland security strategy to guide implementation of the complex mission of the department. Appropriate roles and responsibilities within and between the government and private sector need to be clarified. New threats are prompting a reassessment and shifting of long-standing roles and responsibilities, but these shifts are being considered on a piecemeal and ad hoc basis without benefit of an overarching framework and criteria. A national strategy could provide guidance by more systematically identifying the unique capacities and resources at each level of government to enhance homeland security and by providing increased accountability within the intergovernmental …

Testimony issued by the General Accounting Office with an abstract that begins "The Department of Veterans Affairs (VA) and the Department of Defense (DOD) pharmacy expenditures have risen significantly, reflecting national trends. The increase in pharmacy costs would have been even greater if not for the efforts taken by VA and DOD. GAO identified four important factors that have contributed to reduced pharmacy spending by VA and DOD. First, the two departments have used formularies to encourage the substitution of a lower-cost drug that is determined to be just as effective as a higher-cost drug. Second, VA and DOD have been able to effectively employ different arrangements to pay for or purchase prescription drugs at substantial discounts. Third, VA has significantly reduced the cost of dispensing prescription refills by using highly automated and less expensive consolidated mail outpatient pharmacy (CMOP) centers to handle a majority of the pharmacy workload instead of VA hospital and clinic pharmacies. Fourth, VA and DOD have reduced costs by leveraging their combined purchasing power by jointly buying prescription drugs. Nevertheless, one of the most important challenges is the joint procurement of brand name drugs. Although brand name drugs account for the bulk of prescription drug …

Testimony issued by the General Accounting Office with an abstract that begins "The United States entered into the Compact of Free Association with the Federated States of Micronesia (FSM) and the Republic of the Marshall Islands (RMI) In 1986. The Compact has provided U.S. assistance to the FSM and the RMI in the form of direct funding as well as federal services and programs. The Compact allows for migration from both countries to the United States and established U.S. defense rights and obligations in the region. Provisions of the Compact that deal with economic assistance were scheduled to expire in 2001; however, they will remain in effect for up to 2 additional years while the affected provisions are renegotiated. Current U.S. proposals to the FSM and the RMI to renew expiring assistance would require Congress to approve $3.4 billion in new authorizations. The proposals would provide decreasing levels of annual grant assistance over a 20-year term. Simultaneously, the proposals would require building up a trust fund for each country with earnings that would replace grants once those grants expire. The U.S. proposals include strengthened accountability measures, though details of some key measures remain unknown. The proposals have addressed many, but …

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the Department of Energy's (DOE) plan for external regulation of nuclear and worker safety at its facilities. DOE's position remains essentially unchanged since the 1999 congressional hearing, when the department decided not to move forward on external regulation until cost uncertainties and implementation issues were resolved. Past regulatory simulations and ongoing work by DOE and its potential regulators indicate that the external regulation of the science laboratories would not require prohibitively expensive facility upgrades to be licensable. Further, much of the expected "costs" would likely involve bringing facilities into compliance with DOE's own safety standards. DOE's response to the conference report directive is not a detailed implementation plan. Rather, it is a restatement of its previously stated call for further cost and benefit analyses before making a final decision on accepting external regulation."

Testimony issued by the General Accounting Office with an abstract that begins "Compliance agreements between the Department of Energy (DOE) and its regulators specify cleanup activities and milestones that DOE has agreed to achieve. The 70 compliance agreements at DOE sites vary, but can be divided into three main types. These are: (1) agreements specifically required by the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 to address cleanup of federal sites on EPA's national priorities list or by the Resource Conservation and Recovery Act of 1976 to address the management of mixed radioactive and hazardous waste at DOE facilities; (2) court-ordered agreements resulting from lawsuits initiated primarily by states; and (3) other agreements, including state administrative orders enforcing state hazardous waste management laws. DOE reported completing about 80 percent of its milestones by the time originally scheduled in the agreements. The cost of complying with these agreements is not specifically identified in the DOE budget submitted to Congress. Individual DOE sites develop annual compliance cost estimates as part of their budget requests. However, DOE headquarters officials adjust those individual site estimates to reflect national priorities and to reconcile various competing demands. Compliance agreements are site-specific and are not …

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses management challenges and program risks that the National Aeronautics and Space Administration (NASA) faces in maintaining a skilled workforce, controlling costs, and providing effective oversight for important projects. NASA is taking on a major transformation aimed at eliminating stovepipes; becoming more integrated and results oriented; and reducing risks while working more economically, efficiently, and effectively. Successfully addressing each of four challenges will be critical for NASA in making sure that it is equipped to achieve its vision for the future. The first--strengthening human capital--will require a concerted and sustained effort by NASA's leadership to commit to change; ensure an appropriate mix of employees to meet future business needs; implement effective approaches for acquiring, developing, and retaining talent; develop and retain talent; and create a results-oriented culture. The remaining challenges facing NASA--controlling International Space Station costs; implementing a faster, better, cheaper approach to space exploration; and correcting weaknesses in contract management--are equally important. Without better oversight and management over its most important programs and acquisitions, NASA's transformation stands to lose credibility and support among its partners in industry, the international community, and academia as well as …

Testimony issued by the General Accounting Office with an abstract that begins "As the nation's largest cash assistance program for the poor, the Supplemental Security Income (SSI) program SSI provided $33 billion in benefits to 6.8 million aged, blind, and disabled persons last year. In 2001, the outstanding SSI debt and newly detected overpayments totaled $4.7 billion. To deter and detect overpayments, the agency obtained legislative authority to use additional tools to verify recipients financial eligibility for benefits, enhanced its processes for monitoring and holding staff accountable for completing assigned SSI workloads, and improved its use of automation to strengthen its overpayment detection capabilities. However, because a number of initiatives are still in the planning or early implementation stages, it is too soon to assess their ultimate impact on SSI payment accuracy. In addition to improving its overpayment deterrence and detection capabilities, SSA has made recovery of overpaid benefits a high priority."

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 "According to the International Atomic Energy Agency (IAEA), there have been 181 confirmed cases of illicit trafficking of nuclear materials between 1993 and December 31, 2001. Nuclear materials can be smuggled across a country's border through a variety of means: they can be hidden in a car, train, or ship, carried in personal luggage through an airport; or walked across an unprotected border. U.S. efforts to help other countries combat nuclear smuggling are divided among six federal agencies--the Departments of Energy (DOE); State; and Defense (DOD); the U.S. Customs Service; the Federal Bureau of Investigation (FBI); and the U.S. Coast Guard. From fiscal year 1992 through fiscal year 2001, the six agencies spent about $86 million to help 30 countries, mostly in the former Soviet Union and Central and Eastern Europe, combat the threat of smuggling nuclear and other materials that could be used in weapons of mass destruction. Assistance provided by six agencies includes installing radiation detection equipment, helping countries improve their ability to control the export of goods and technologies that could be used to develop nuclear weapons, and providing other equipment and training to improve …

Testimony issued by the General Accounting Office with an abstract that begins "Strategic human capital management is critical to maximizing government's performance and ensuring its accountability for the benefit of the American people. The early years of the 21st century are proving to be a period of profound transition being driven by several key trends, including global interdependence; diverse, diffuse, and asymmetrical security threats; rapidly evolving science and technology; dramatic shifts in age and composition of the population; important quality of life issues; the changing nature of the economy; and evolving governmental structures and concepts. GAO designated strategic human capital management as a governmentwide high-risk area because of a long-standing lack of a consistent strategic approach to marshaling, managing, and maintaining the human capital needed for government to deliver on its promises. Three broad human capital reform opportunities are instrumental to agency transformation efforts: aligning individual and organizational performance, implementing results-oriented pay reform, and sustaining agency transformation efforts."

Testimony issued by the General Accounting Office with an abstract that begins "Title III of the proposed Homeland Security Act of 2002 would transfer responsibility for certain chemical, biological, radiological, and nuclear research and development programs and activities to the new department. The proposed Department of Homeland Security would develop national policy for, and coordination of, the federal government's civilian research and development efforts to counter chemical, biological, radiological, and nuclear threats. Although the new department could improve coordination of existing research and development programs, the proposed transfer of control and priority setting for research from the organizations where the research would be conducted could be disruptive. Transferring control over these programs, including priority setting, to the new department has the potential to disrupt some programs that are critical to basic public health. The President's proposal is not clear on how both the homeland security and the biomedical research objectives would be accomplished. However, if an agency's mission fits with homeland security, its transfer to the new department is appropriate."

Testimony issued by the General Accounting Office with an abstract that begins "The government faces a unique opportunity to create an organization that is extremely effective in protecting the nation's borders and citizens against terrorism. There is likely to be considerable benefit over time from restructuring some of the homeland security functions, including reducing risk and improving the economy, efficiency, and effectiveness of consolidated agencies and programs. Sorting out those programs and agencies that would most benefit from consolidation versus those in which dual missions must be balanced in order to achieve a more effective fit in the proposed Department of Homeland Security is a difficult but critical task. Moreover, the magnitude of the challenges that the new department faces will clearly require substantial time and effort, and it will take institutional continuity and additional resources to be fully effective. In the short term, issues to be resolved include the harmonization of communication systems, information technology systems, human capital systems, the physical location of people and other assets, and other factors. Given the magnitude of this task, not everything can be achieved at once, and a deliberate phasing of some operations will be necessary. The new department will need to …

Testimony issued by the General Accounting Office with an abstract that begins "A weak overall control environment and breakdowns in key internal controls have left the Army's purchase card program vulnerable to fraudulent, improper, and abusive purchases. At five Army major commands and one installation in each of the commands, GAO found that the Army had not established an effective internal control environment. As the use of purchase cards has expanded, Army management has not emphasized internal controls to ensure that individual transactions were for authorized purposes or that they adhered to legal and regulatory requirements. GAO identified a substantial number of purchases for which cardholder and approving officials had not adhered to important internal controls and were not in accordance with valid requirements, policies, and procedures. The weaknesses identified in the control environment and the breakdown in specific internal control activities resulted in potentially fraudulent and other improper transactions not being prevented or properly identified."