A statement of record issued by the Government Accountability Office with an abstract that begins "This statement discusses ongoing efforts by the Department of Defense (DOD), the Department of State (State), and the U.S. Agency for International Development (USAID) to track information on contractor personnel and contracts in Iraq and Afghanistan. Reliable, meaningful data on contractors and the services they provide are necessary to inform agency decisions on when and how to effectively use contractors, provide support services to contractors, and ensure that contractors are properly managed and overseen. The importance of such data is heightened by the unprecedented reliance on contractors in Iraq and Afghanistan and the evolving U.S. presence in the two countries. The statement focuses on (1) how information on contractor personnel and contracts can assist agencies in managing and overseeing their use of contractors and (2) the status of DOD, State, and USAID's efforts to track statutorily-required information on contractor personnel and contracts in Iraq and Afghanistan, as well as our recent recommendations to address the shortcomings we identified in their efforts. This statement is drawn from our October 2009 report on contracting in Iraq and Afghanistan, which was mandated by section 863 of the National …

Testimony issued by the Government Accountability Office with an abstract that begins "The United States and the Government of Iraq have signed a Security Agreement calling for the drawdown of U.S. forces from Iraq. Predicated on that agreement and U.S. Presidential guidance, Multi-National Force-Iraq (MNF-I) has issued a plan for the reduction of forces to 50,000 U.S. troops by August 31, 2010, and a complete withdrawal of forces by the end of 2011. The drawdown from Iraq includes the withdrawal of approximately 128,700 U.S. troops, over 115,000 contractor personnel, the closure or transfer of 295 bases, and the retrograde of over 3.3 million pieces of equipment. Today's statement will focus on (1) the extent to which the Department of Defense (DOD) has planned for the drawdown in accordance with timelines set by the Security Agreement and presidential directive; and (2) factors that may impact the efficient execution of the drawdown in accordance with established timelines. This statement is based on GAO's review and analysis of DOD and MNF-I plans, and on interviews GAO staff members conducted with DOD officials in the United States, Kuwait, and Iraq. It also draws from GAO's extensive body of issued work on Iraq and drawdown-related …

A letter report issued by the Government Accountability Office with an abstract that begins "The Department of the Treasury (Treasury) provided $81.1 billion in Troubled Asset Relief Program (TARP) aid to the U.S. auto industry, including $62 billion in restructuring loans to Chrysler Group LLC (Chrysler) and General Motors Company (GM). In return, Treasury received 9.85 percent equity in Chrysler, 60.8 percent equity and $2.1 billion in preferred stock in GM, and $13.8 billion in debt obligations between the two companies. As part of Government Accountability Office's (GAO) statutory responsibilities for providing oversight of TARP, this report addresses (1) steps Chrysler and GM have taken since December 2008 to reorganize, (2) Treasury's oversight of its financial interest in the companies, and (3) considerations for Treasury in monitoring and selling its equity in the companies. GAO reviewed documents on the auto companies' restructuring and spoke with officials at Treasury, Chrysler, and GM, and individuals with expertise in finance and the auto industry."

Correspondence issued by the Government Accountability Office with an abstract that begins "The Department of Defense (DOD) prepositions equipment at strategic locations around the world to enable it to field combat-ready forces in days, rather than the weeks it would take if equipment had to be moved from the United States to the locations of conflicts. These prepositioned materiel and equipment sets have played an important role in supporting ongoing operations in Iraq and Afghanistan. However, sustained operations in Iraq and Afghanistan have taken a toll on the condition and readiness of military equipment. Over the last few years, we have identified a number of ongoing and long-term challenges regarding DOD's prepositioned stocks. The National Defense Authorization Act for Fiscal Year 2008 added an annual reporting requirement to Title 10 of the United States Code that directs DOD to submit a report to the congressional defense committees on the status of prepositioned materiel and equipment as of the end of each fiscal year, no later than the date of the submission of the President's annual budget request. For this report, our objective was to determine what additional information in future DOD reports on the status of its prepositioned materiel and …

A letter report issued by the Government Accountability Office with an abstract that begins "High-level nuclear waste--one of the nation's most hazardous substances--is accumulating at 80 sites in 35 states. The United States has generated 70,000 metric tons of nuclear waste and is expected to generate 153,000 metric tons by 2055. The Nuclear Waste Policy Act of 1982, as amended, requires the Department of Energy (DOE) to dispose of the waste in a geologic repository at Yucca Mountain, about 100 miles northwest of Las Vegas, Nevada. However, the repository is more than a decade behind schedule, and the nuclear waste generally remains at the commercial nuclear reactor sites and DOE sites where it was generated. This report examines the key attributes, challenges, and costs of the Yucca Mountain repository and the two principal alternatives to a repository that nuclear waste management experts identified: storing the nuclear waste at two centralized locations and continuing to store the waste on site where it was generated. GAO developed models of total cost ranges for each alternative using component cost estimates provided by the nuclear waste management experts. However, GAO did not compare these alternatives because of significant differences in their inherent characteristics that …

Correspondence issued by the Government Accountability Office with an abstract that begins "In March 2009, out of concern that the overall security situation in Afghanistan had not improved after more than 7 years of U.S. and international efforts, the administration completed a 60-day strategic review of U.S. policy and the security environment in Afghanistan and Pakistan. Based on this review, and recognizing the vital U.S. interest in addressing security threats posed by extremists in Afghanistan and Pakistan, the administration announced a strategic goal of disrupting, dismantling, and eventually defeating these extremists and eliminating their safe havens in both Afghanistan and Pakistan. Subsequently, in August 2009, the United States issued an integrated civilian-military campaign plan for support to Afghanistan. The strategy and campaign plan call for, among other things, the execution of an integrated counterinsurgency mission and continued efforts to build the capacity of military and civilian elements of the Afghan government to lead counterinsurgency and counterterrorism efforts and provide internal security for the Afghan people. Accordingly, the focus for U.S. forces in Afghanistan will be to (1) secure Afghanistan from insurgent and terrorist threats and (2) rapidly train Afghanistan National Security Forces (ANSF) to lead military and law enforcement operations."

Correspondence issued by the Government Accountability Office with an abstract that begins "We have performed the procedures described in this letter, which we agreed to perform and with which the Inspector General of the Department of Transportation concurred, solely to assist the Inspector General's office in ascertaining whether the net excise tax revenue distributed to the Airport and Airway Trust Fund (AATF) for the fiscal year ended September 30, 2009, is supported by the underlying records. As agreed with the Inspector General's office, we evaluated fiscal year 2009 activity affecting excise tax distributions to the AATF."

Correspondence issued by the Government Accountability Office with an abstract that begins "The Government Accountability Office (GAO) has performed the procedures to which we agreed upon to perform and with which you concurred, solely to assist your office in ascertaining whether the net excise tax revenue distributed to the Highway Trust Fund (HTF) for the fiscal year ended September 30, 2009, is supported by the underlying records. GAO evaluated fiscal year 2009 activity affecting excise tax distributions to the HTF. GAO conducted the engagement in accordance with U.S. generally accepted government auditing standards, which incorporate certain financial audit and attestation standards established by the American Institute of Certified Public Accountants (AICPA)."

Correspondence issued by the Government Accountability Office with an abstract that begins "The Army has three government-owned and operated manufacturing arsenals that it considers vital to the Department of Defense's (DOD) industrial base because they provide products or services that are either unavailable from private industry or ensure a ready and controlled source of technical competence and resources in case of national defense contingencies or other emergencies. These three arsenals are Pine Bluff Arsenal, Arkansas; Rock Island Arsenal, Illinois; and Watervliet Arsenal, New York. Pine Bluff's core mission is the production of conventional ammunition and other types of munitions. Rock Island's core mission is weapons manufacturing, and the arsenal is home to the Army's only remaining foundry. Watervliet is the Army's only cannon maker and also produces other armaments and mortars. Historically, the Army's arsenals have generally had vacant or underutilized space. For many years the Army has not provided the capital investment needed to keep pace with modern manufacturing requirements and retain core skills in the arsenal workforce. Additionally, the arsenals have generally had lower workloads during peacetime, but since the onset of the wars in Iraq and Afghanistan they have experienced a surge in workloads to provide vital …

Testimony issued by the Government Accountability Office with an abstract that begins "Since 2001, the National Archives and Records Administration (NARA) has been working to develop a modern Electronic Records Archive (ERA) system, a major information system that is intended to preserve and provide access to massive volumes of all types and formats of electronic records. The system is being developed incrementally over several years, with the first two pieces providing an initial set of functions and additional capabilities to be added in future increments. NARA plans to deploy full system functionality by 2012 at an estimated life-cycle cost of about $550 million. NARA originally planned to complete the first segment of ERA in September 2007. However, software and contracting problems led the agency and its contractor Lockheed Martin to revise the development approach. The revised plan called for parallel development of two different increments: a "base" ERA system with limited functionality and an Executive Office of the President (EOP) system to support the ingestion and search of records from the outgoing Bush Administration. GAO was asked to summarize NARA's progress in developing the ERA system and the ongoing risks the agency faces in completing it. In preparing this testimony, …

A letter report issued by the Government Accountability Office with an abstract that begins "The Department of Labor (Labor) collects information on fees charged to 401(k) plans primarily through its Form 5500. Labor issued final regulations in November 2007, making changes to, among other things, Schedule C of the Form 5500. Labor put emphasis on reporting the indirect compensation paid to service providers and between service providers, in an effort to capture all of the costs that plan sponsors incur. Congress and others are concerned that Labor's rules could result in duplicative and confusing reporting. Given these concerns, Government Accountability Office (GAO) was asked to examine the new requirements and determine whether Labor's new requirements will provide (1) clear and understandable guidance to plan sponsors and (2) useful information to Labor and others. GAO analyzed Labor's regulations and interviewed Labor and other officials about disclosure and reporting practices."

Testimony issued by the Government Accountability Office with an abstract that begins "The U.S. Postal Service's (USPS) financial condition and outlook deteriorated significantly during fiscal year 2009. USPS was not able to cut costs fast enough to offset declining mail volume and revenues resulting from the economic downturn and changing mail use. Facing an unprecedented cash shortfall, USPS stated that it would have insufficient cash on hand to make its mandated $5.4 billion payment to prefund postal retiree health benefits that was due by the end of the fiscal year. In July, 2009, GAO added USPS's financial condition to the list of high-risk areas needing attention by Congress and the executive branch to achieve broad-based transformation. GAO stated that USPS urgently needs to restructure to address its current and long-term financial viability. GAO also stated that USPS needs to use its flexibility to generate revenue through new or enhanced products. This testimony will (1) update USPS's financial condition and outlook, (2) describe changes made by the Postal Accountability and Enhancement Act (PAEA) of 2006 that provided USPS with greater flexibility to generate revenues, (3) outline USPS's revenue-generation actions and results using this flexibility, and (4) discuss options for USPS to …

A letter report issued by the Government Accountability Office with an abstract that begins "In 2007, Medicare spent $8.3 billion for durable medical equipment (DME) and related supplies. To reduce spending, the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA) required that the Centers for Medicare & Medicaid Services (CMS) phase in, with several rounds of bidding, a large-scale competitive bidding program (CBP) for certain DME and other items. DME suppliers began bidding in round 1 of the CBP on May 15, 2007. After contracts were awarded, the Medicare Improvements for Patients and Providers Act of 2008 (MIPPA), was enacted on July 15, 2008. Because of numerous concerns MIPPA delayed the program, terminated supplier contracts, and required CMS to begin the CBP round 1 rebid in 2009. GAO was asked to report on (1) the results of CBP round 1, (2) the major challenges CMS had in conducting CBP round 1, and (3) the steps CMS has taken to improve future CBP rounds. GAO reviewed CMS data and relevant laws and regulations, and interviewed officials from CMS and its contractors, and DME suppliers and professional associations."

A letter report issued by the Government Accountability Office with an abstract that begins "Established in January 2004 with a mission to reduce poverty through economic growth, the Millennium Challenge Corporation (MCC) has committed $6.9 billion for compacts with 19 developing countries. MCC vests compact management with accountable entities in recipient countries, called Millennium Challenge Accounts (MCA). MCAs, with guidance from MCC, allocate resources, oversee and implement a financial plan, approve expenditures and procurements, and implement compact projects. This report, directed by the fiscal year 2008 Consolidated Appropriations Act, assesses MCC and MCA (1) financial controls; (2) procurement practices; and (3) development, implementation, and oversight of contracts and projects. GAO focused on financial and procurement transactions and projects at MCAs in Honduras, Georgia, and Cape Verde, countries with high disbursement totals as of the end of fiscal year 2008."

A letter report issued by the Government Accountability Office with an abstract that begins "The Small Business Administration (SBA) guarantees individual loans that lenders originate. The agency uses its Loan and Lender Monitoring System (L/LMS) to assess the individual risk of each loan, and SBA's contractor developed a lender risk rating system based on L/LMS data. However, questions have been raised about the extent to which SBA has used its lender risk rating system to improve its oversight of lenders. The Government Accountability Office (GAO) was asked to examine (1) how SBA's risk rating system compares with those used by federal financial regulators and lenders and the system's usefulness for predicting lender performance and (2) how SBA uses the lender risk rating system in its lender oversight activities. To meet these objectives, GAO reviewed SBA documents; interviewed officials from three federal financial regulators and 10 large SBA lenders; analyzed SBA loan data; and interviewed SBA officials."

A letter report issued by the Government Accountability Office with an abstract that begins "The tax credit for qualified research expenses provides significant subsidies to encourage business investment in research intended to foster innovation and promote long-term economic growth. Generally the credit provides a subsidy for research spending in excess of a base amount but concerns have been raised about its design and administrability. Government Accountability Office (GAO) was asked to describe the credit's use, determine whether it could be redesigned to improve the incentive to do new research, and assess whether recordkeeping and other compliance costs could be reduced. GAO analyzed alternative credit designs using a panel of corporate tax returns and assessed administrability by interviewing Internal Revenue Service (IRS) and taxpayer representatives."

A letter report issued by the Government Accountability Office with an abstract that begins "There have been long-standing concerns regarding the Food and Drug Administration's (FDA) oversight of postmarket drug safety. In 2006, GAO reported that FDA had not clearly defined the roles of two offices involved in making decisions about postmarket safety--the Office of New Drugs (OND) and the Office of Surveillance and Epidemiology (OSE). GAO and others reported additional concerns such as limitations in the data FDA relies on to identify postmarket drug safety issues and the systems it uses to track such issues. At that time, GAO made recommendations, including that FDA improve the independence of its program for resolving scientific disputes related to postmarket drug safety. In 2007, legislation further expanded FDA's postmarket responsibilities. This report examines the steps that FDA is taking to (1) enhance its processes for making decisions about the safety of marketed drugs, (2) improve access to data that help the agency identify drug safety issues, and (3) build its capacity to fulfill its postmarket drug safety workload. GAO reviewed FDA policies and planning documents, and interviewed FDA officials."

A letter report issued by the Government Accountability Office with an abstract that begins "The Department of Justice's (DOJ) Federal Bureau of Prisons (BOP) is responsible for the custody and care of about 209,000 federal inmates--a population which has grown by 44 percent over the last decade. In fiscal years 2008 and 2009, the President requested additional funding for BOP because costs for key operations were at risk of exceeding appropriated funding levels. Government Accountability Office (GAO) was congressionally directed to examine (1) how BOP estimates costs when developing its annual budget request to DOJ; (2) the extent to which BOP's methods for estimating costs follow established best practices; and (3) the extent to which BOP's costs for key operations exceeded requested funding levels identified in the President's budget in recent years, and how this has affected BOP's ability to manage its growing inmate population. In conducting our work, GAO analyzed BOP budget documents, interviewed BOP and DOJ officials, and compared BOP's cost estimation documentation to criteria in GAO's Cost Estimating and Assessment Guide."

A letter report issued by the Government Accountability Office with an abstract that begins "GAO is required to audit the consolidated financial statements of the U.S. government. Because of the significance of the federal debt held by the public to the governmentwide financial statements, GAO audits the Bureau of the Public Debt's (BPD) Schedules of Federal Debt annually. The audit of these schedules is done to determine whether, in all material respects, (1) the schedules are reliable and (2) BPD management maintained effective internal control over financial reporting relevant to the Schedule of Federal Debt. Further, GAO tests compliance with a significant provision of law related to the Schedule of Federal Debt (statutory debt limit). Federal debt managed by BPD consists of Treasury securities held by the public and by certain federal government accounts, referred to as intragovernmental debt holdings. The level of debt held by the public primarily reflects how much of the nation's wealth has been absorbed by the federal government to finance prior federal spending in excess of federal revenues. Intragovernmental debt holdings represent balances of Treasury securities held by federal government accounts, primarily federal trust funds such as Social Security, that typically have an obligation to …

A letter report issued by the Government Accountability Office with an abstract that begins "Because of the significance of Internal Revenue Service (IRS) collections to overall federal receipts and, in turn, to the consolidated financial statements of the U.S. government, which Government Accountability Office (GAO) is required to audit, and Congress's interest in financial management at IRS, GAO audits IRS's financial statements annually to determine whether (1) the financial statements are fairly stated, and (2) IRS management maintained effective internal control over financial reporting. GAO also tests IRS's compliance with selected provisions of significant laws and regulations and its financial systems' compliance with the Federal Financial Management Improvement Act of 1996 (FFMIA)."

Correspondence issued by the Government Accountability Office with an abstract that begins "Owing to high levels of poverty, American Samoa, the Commonwealth of the Northern Mariana Islands (CNMI), Guam, the Commonwealth of Puerto Rico, and the U.S. Virgin Islands (USVI) rely heavily on need-based federal programs to provide basic services. Two federal agencies publish measures used by some federal programs to determine poverty status and allocate need-based assistance: the Census Bureau (Census) publishes poverty thresholds--dollar-value benchmarks for determining poverty status--and the Department of Health and Human Services (HHS) provides poverty guidelines, which are derived from the poverty thresholds. The approaches used to determine these poverty measures affect, respectively, poverty population statistics and income eligibility of individuals and families for certain need-based federal assistance. The poverty thresholds apply nationwide and in the insular areas, with no geographic variation, while separate poverty guidelines for Alaska and Hawaii, but not for the insular areas, have been provided since 1970. We (1) examined how the Census poverty thresholds and HHS poverty guidelines are determined for the insular areas. In addition, we (2) considered the possibility of providing poverty thresholds and guidelines specific to the insular areas and identified the implications of extending to the …

A letter report issued by the Government Accountability Office with an abstract that begins "Americans increasingly rely on wireless phones, with 35 percent of households now primarily or solely using them. Under federal law, the Federal Communications Commission (FCC) is responsible for fostering a competitive wireless marketplace while ensuring that consumers are protected from harm. States also have authority to oversee some aspects of service. As requested, this report discusses consumers' satisfaction and problems with wireless phone service and FCC's and state utility commissions' efforts to oversee this service. To conduct this work, Government Accountability Office (GAO) surveyed 1,143 adult wireless phone users from a nationally representative, randomly selected sample; surveyed all state utility commissions; and interviewed and analyzed documents obtained from FCC and stakeholders representing consumers, state agencies and officials, and the industry."

A letter report issued by the Government Accountability Office with an abstract that begins "Department of Defense (DOD) used nearly 700 aircraft, as well as commercial and leased aircraft, to carry about 3 million troops and 800,000 tons of cargo in support of wartime, peacetime, and humanitarian efforts in 2008. C-5s and C-17s move troops and cargo internationally (strategic airlift) and C-130s are the primary aircraft that moves them within a theater of operation (tactical airlift). Over the next 4 years, DOD plans to spend about $12 billion to modernize and procure airlifters and is currently studying how many it needs. The Government Accountability Office (GAO) was asked to (1) identify the status of DOD's modernization and acquisition efforts and (2) determine how well DOD is addressing any capability gaps and redundancies. In conducting this work, GAO identified the cost, schedule, and performance of airlift programs, as well as DOD's plan for addressing gaps and redundancies. GAO also discussed mobility study efforts with DOD, Institute for Defense Analysis (IDA), and RAND Coporation officials."

A letter report issued by the Government Accountability Office with an abstract that begins "The International Monetary Fund (IMF) has significantly increased its total committed lending to countries from about $3.5 billion in August 2008 to about $170.4 billion in August 2009, as countries have been severely affected by the global economic crisis. IMF-supported programs are intended to help countries overcome balance-of-payments problems, stabilize their economies, and restore sustainable economic growth. Critics have long-standing concerns that the IMF has an overly austere approach to macroeconomic policy that does not sufficiently heed country viewpoints. To help address these concerns, the IMF recently stated that it has changed its policies, including by increasing its flexibility. GAO was asked to examine (1) the process for designing an IMF-supported program, (2) the IMF-supported programs in four recipient countries, and (3) the extent to which the findings of empirical economic studies are consistent with the IMF's macroeconomic policies. GAO analyzed IMF and recipient country documents; interviewed U.S., IMF, and foreign government officials, conducting fieldwork in four relatively large recipient countries; and analyzed published or widely cited empirical studies. GAO received written comments from the Department of the Treasury, noting its concurrence with the report's conclusions."