A letter report issued by the General Accounting Office with an abstract that begins "The Department of Defense (DOD) provides a wide range of support to many organizations at home and abroad. GAO estimates that, in fiscal year 1999, DOD provided support in at least 7,125 instances to 345 or more entities, including international organizations; private citizens; and federal, state, local, and foreign governments. This support consumed more than two million military staff-days. GAO could not determine the total cost of DOD's support because of the limited data it received. However, it conservatively estimates the cost to be about $180 million. Providing assistance to civil authorities does not appear to harm retention. DOD data show that overall retention has remained relatively stable during the last decade. There are alternatives to the use of military personnel. DOD and some civil entities have used contractors rather than military personnel for some activities, such as construction, transportation, and medical treatment. There are limitations on the kinds of support that contractors can provide, however. For most of the 197 support instances GAO reviewed that occurred in 1997-99 for the State Department, the Drug Enforcement Administration, and the Secret Service, DOD billed and collected about …

A letter report issued by the General Accounting Office with an abstract that begins "The National Defense Stockpile is composed of strategic and critical materials that can be used in times of national emergency. The stockpile was established to minimize dependence on foreign sources of these materials. Because of changes in mobilization planning and modernization of weapon systems, stockpiling requirements for many materials have been reduced dramatically during the last two decades. The Defense Logistic Agency's Defense National Stockpile Center manages the stockpile program and is responsible for the sale of materials that exceed stockpile requirements. Concerns have arisen over whether existing cash balances and projected collections from stockpile gross sales will meet all expected stockpile transaction fund outlays for fiscal years 2000-2010. GAO found that the National Defense Stockpile transaction fund's projected long-term outlays exceed projected collections from gross sales. The projections do not include all likely outlays, so the timing and size of a gap between available funds and outlays is unclear."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO assisted the Department of Transportation determine whether the net excise tax revenue distributed to the Airport and Airway Trust Fund (AATF) for fiscal year 2000 was supported by the underlying records. GAO agreed to (1) perform detailed tests of transactions that represent the underlying basis of amounts distributed to AATF, (2) review the Internal Revenue Service's (IRS) quarterly AATF certifications, (3) review the Department of the Treasury Financial Management Service adjustments to AATF for FY 2000, (4) review the Office of Tax Analysis process for estimating amounts to be distributed to AATF for the fourth quarter of FY 2000, (5) compare net excise tax distributions to AATF during FY 2000 and amounts reported in the financial statements prepared by the Bureau of the Public Debt for AATF and the Federal Aviation Administration's consolidated financial statements, and (6) review key reconciliations of IRS records to Treasury records."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO performed procedures to determine whether the net federal unemployment tax revenue distributed to the Unemployment Trust Fund for fiscal year 2000 is supported by the underlying records. The procedures GAO agreed to perform include (1) detailed tests of transactions that represent the underlying basis of amounts distributed to the UTF and (2) a review of key reconciliations of the Internal Revenue Service records to those of the Department of the Treasury."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO assisted the Department of Transportation determine whether the net excise tax revenue distributed to the Highway Trust Fund (HTF) for the fiscal year 2000 was supported by the underlying records. GAO agreed to (1) perform detailed tests of transactions that represent the underlying basis of amounts distributed to HTF, (2) review the Internal Revenue Service's (IRS) quarterly HTF certifications, (3) review the Financial Management Service adjustments to HTF for FY 2000, (4) review the Office of Tax Analysis process for estimating amounts to be distributed to HTF for the fourth quarter of FY 2000, (5) compare net excise tax distributions to the HTF during FY 2000 and amounts reported in the financial statements prepared by the Bureau of Public Debt for HTF and HTF's financial statements, and (6) review key reconciliations of IRS records to Treasury records."

Correspondence issued by the General Accounting Office with an abstract that begins "This report identifies civilian nondefense agency capital projects with estimated costs of $175.6 billion, based on agency budget justifications and other data. Costs for incrementally funded and high technology civilian projects are estimated at $154.7 billion. Of this amount, $78.5 billion in budget authority has been provided through fiscal year 2000, leaving $76.2 billion of budget authority still required after fiscal year 2000 to complete these projects, a requirement that constitutes a claim on discretionary spending in future years. About half of the $154.7 billion is for high technology projects. Because some capital projects have unknown funding requirements beyond the fiscal year 2001 request, the remaining budget authority needed to complete all projects exceeds the $76.2 billion identified and assumes no further cost growth. This budget authority relates only to civilian projects. Department of Defense spending for capital acquisitions is generally fully funded; its fiscal year 1999 capital spending totaled almost $53 billion. If the Navy shipbuilding and conversion account were to be moved from full to incremental funding for a given period of time, this would not allow the Navy to procure more ships for a given …

A chapter report issued by the General Accounting Office with an abstract that begins "The federal government must overcome several major challenges before public key infrastructure (PKI) technology can be widely and effectively used. These challenges include providing interoperability among agency PKIs, ensuring that PKI implementations can support a potential large scale of users, reducing the cost of building PKI systems, setting policies to maintain trust levels among agencies, and establishing training programs for users at all levels. Although such challenges are difficult to overcome in the near term, the federal government can take steps to better assist agencies develop and implement PKIs that may eventually be interconnected into a federal governmentwide system. The recent effort to develop a Federal Bridge Certification Authority (FBCA) is an excellent first step in this direction, but this effort lacks the context of a well-defined program plan for the government as well as key policy and technical standards. Establishing a federal PKI management framework could facilitate and accelerate participation in the FBCA as well as overall federal adoption of key technology for enabling electronic government."

A letter report issued by the General Accounting Office with an abstract that begins "In July 2000, the Defense Commissary Agency proposed changes to its regional management structure that it expects will generate savings, improve efficiencies, and provide more effective management of commissary operations. The plan calls for eliminating the two area offices within the Eastern Region and consolidating most of the Eastern Region's operations at the region's headquarters at Virginia Beach, Virginia. Although the agency has not fully refined its cost and savings estimates, it appears that these proposed changes will yield savings and improve operations. However, with the implementation of the plan comes a loss of operational expertise in the closing offices that could potentially disrupt operations and customer service. Whether the proposed regional reorganization is the best approach for achieving efficiencies is unclear because the agency did not assess alternative structural approaches to improving regional operations and creating efficiencies. The plan is limited because it considers only the Eastern Region and not the overall regional structure, which is to be considered in the agency's follow-on study of the current reorganization plan. Although the closure of the area offices is likely to improve efficiency, the planned study to …

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the status of the FTS 2001 long distance telecommunication program. The General Services Administration (GSA) failed to meet its goal of completing the transition from FTS 2000 to the FTS 2001 contracts by December 6, 2000. Several factors contributed to the delays, including staffing shortages and turnover, contractor billing problems, and contract-related modifications. As of April 11, 2001, the overall FTS 2001 transition was about 92 percent complete. The transition of voice services from FTS 2000 and FTS 2001 is almost entirely complete and switched data services and dedicated transmission services are about 82 and 88 percent complete, respectively. The remaining transition requirements are scheduled for completion by the end of June 2001. Nevertheless, the collective effect of delays encountered during this complex transition has jeopardized the timely achievement of FTS 2001's goals of (1) ensuring best service and price to the government and (2) maximizing competition. GSA has taken steps to position the FTS 2001 program for greater success, including developing better telecommunications planning procedures and improving contractor billing. This testimony summarizes a March 2001 GAO report, GAO-01-289."

Correspondence issued by the General Accounting Office with an abstract that begins "Since 1998, the Internal Revenue Service (IRS) has been undergoing a major effort to modernize its overall structure. This report examines the status of the IRS' efforts to improve its research operations. GAO discusses the (1) steps IRS has taken to modernize its research operations since October 1, 2000, (2) areas of concern raised in past reports and studies of IRS research operations, and (3) status of IRS' efforts to address these concerns within the new research operations. GAO found that IRS has completed the creation of research units within each of its operational divisions to work together collaboratively and has continuously placed staff in key leadership positions. IRS is just beginning its efforts to address past areas of concern. Challenges involving research leadership, human capital, organizational infrastructure, systems and data management, customer focus, and performance measures must still be addressed."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses states' plans for operating their Temporary Assistance for Needy Families (TANF) programs in the event of an economic downturn. GAO found that the data available on the levels and adequacy of states' reserves is insufficient and misleading. Furthermore, most states have done little planning for economic contingencies. Many states cite obstacles to saving money for possible economic downturns. Although TANF funds can be set aside in a budgetary reserve, state officials said that they are concerned that the accumulation of unspent TANF funds might signal that the funds are not needed. Another option for states would be to save their own funds in a general purpose rainy day account, but state officials said that welfare would have to compete with other state priorities when these funds are released from state treasuries. There are now federal contingency mechanisms for states to access additional federal resources in the event of a recession or other emergency--the Contingency Fund for State Welfare Programs and the Federal Loan for State Welfare Programs. However, states generally found these programs too complex and restrictive, and would most likely find other ways to …

Correspondence issued by the General Accounting Office with an abstract that begins "This report responds to congressional questions about GAO's hearing on the Notification and Federal Employee Antidiscrimination and Retaliation Act of 2001. This report discusses the (1) importance of disciplining managers and employees who engage in discriminatory practices, (2) settlement process, and (3) U.S. Postal Service's antidiscrimination programs."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit report covering the financial statements of the Aviation Hall of Fame for 1999 and 1998. GAO found no reportable instances of noncompliance with applicable law, and the audit report included the auditors' opinions that the financial statements of the corporation were presented fairly in accordance with generally accepted accounting principles."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit report covering the financial statements of the Legion of Valor of the United States of America, Incorporated, for fiscal year 2000. GAO notes that the statement for the Legion of Valor Museum was not audited. The Legion of Valor Museum represents a significant portion of the financial activity for the Legion of Valor--more than half of the reported revenues and expenses. GAO's review disclosed no other reported instances of noncompliance."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit report covering the financial statements of the Marine Corps League for fiscal years 2000 and 1999. GAO found no reportable instances of noncompliance. The audit report included the auditors' opinions that the financial statements of the corporation were presented fairly in accordance with generally accepted accounting principles."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit report covering the financial statements of the Military Chaplains Association of the United States of America for 1999 and 1998. GAO found no reportable instances of noncompliance. The audit report included the auditors' opinions that the financial statements of the corporation were presented fairly in accordance with generally accepted accounting principles."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit report covering the financial statements of the National Conference of State Societies, Washington, District of Columbia, for fiscal years 1999 and 1998. GAO found no reportable instances of noncompliance, and the report included the auditor's opinions that the financial statements of the corporation were presented fairly on a cash basis of accounting."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses GAO's achievements in fiscal year 2000, its current plans and future challenges, and its budget request for fiscal year 2002. Financial benefits to taxpayers as a result of GAO's work totaled more than $23 billion in fiscal year 2000--a $61 return on every dollar invested in GAO. During fiscal year 2001, GAO continued to focus its work on the major issues facing Congress, such as Social Security, and worked with leaders in the House and the Senate to strengthen congressional oversight. GAO requested a budget of about $430 million in fiscal year 2002. This funding level will allow GAO to maintain a staff of 3,275 full-time equivalent employees. In the coming fiscal year, GAO plans to increasingly emphasize issues that are of significant congressional and public concern and to take steps internally to address its two major management challenges--human capital and information technology."

A letter report issued by the General Accounting Office with an abstract that begins "Many of today's workers may not be financially prepared for retirement when they stop working. Many people are counting on Social Security alone, without an additional retirement plan. The Savings Are Vital to Everyone's Retirement (SAVER) Act of 1997 requires the Department of Labor (DOL) to hold periodic national summits and run an outreach program to promote retirement saving. This report (1) identifies major accomplishments of the 1998 summit and issues that might affect future summits, (2) describes DOL's outreach program, and (3) determines what DOL knows about the effectiveness of the summit and outreach program. GAO found that the 1998 National Summit made progress in identifying problems that workers face in saving for retirement. DOL's Outreach Program--the Retirement Savings Education Campaign--targets of small business owners, women, minorities, and youth to change the way they think about, and act on, their retirement saving needs. DOL has not tried to assess the extent to which outreach efforts from the 1998 National Summit and Pension and Welfare Benefits Administration have increased the public's knowledge and understanding of retirement savings."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony reviews the Department of Defense's (DOD) handling of appropriated funds from expired appropriation accounts. In 1990, Congress changed the law governing the use of appropriation accounts because it concluded that controls over them were not working. Without adequate controls, Congress was concerned that agencies could disburse money in amounts and for purposes that it had not approved. GAO found that DOD improperly charged appropriation accounts after they were closed. GAO also found that DOD did not establish the requisite systems, controls, and managerial attention required to properly account for its disbursements consistent with the 1990 account closing law, and as a result, DOD made at least $615 million of illegal or otherwise improper adjustments during fiscal year 2000 alone. DOD was aware of the limitations the account closing law placed on the availability of canceled appropriations and that the law was enacted because of previous abuses by DOD's use of old appropriations. DOD also knew that a major system used to control its use of appropriations allowed for disbursements to be charged in a way that was inconsistent with the law. However, DOD did nothing to …

A letter report issued by the General Accounting Office with an abstract that begins "This report reviews the Department of Defense's (DOD) handling of appropriated funds from expired appropriation accounts. In 1990, Congress changed the law governing the use of appropriation accounts because it concluded that controls over them were not working. Without adequate controls, Congress was concerned that agencies could disburse money in amounts and for purposes that it had not approved. GAO found that DOD improperly charged appropriation accounts after they were closed. GAO also found that DOD did not establish the requisite systems, controls, and managerial attention required to properly account for its disbursements consistent with the 1990 account closing law. As a result, DOD made at least $615 million of illegal or otherwise improper adjustments during fiscal year 2000 alone. DOD was aware of the limitations the account closing law placed on the availability of canceled appropriations and that the law was enacted because of previous abuses by DOD. DOD also knew that a major system used to control its use of appropriations allowed for disbursements to be charged in a way that was inconsistent with the law. However, DOD did nothing to fix the system, …

A letter report issued by the General Accounting Office with an abstract that begins "In negotiating profit on contracts, the Department of Defense (DOD) requires contracting officers to set negotiating objectives by relying on guidelines in defense regulations. Congress mandated that DOD review its profit guidelines and consider whether modifying them would provide more incentive for contractors to develop and produce complex and innovative new technologies for weapon systems. After completing its review, DOD issued a final rule in December 2000 that added a technology incentive to its guidelines for setting profit objectives on negotiated defense contracts. This report reviews whether the new policy is (1) likely to achieve its intended objective of stimulating increased innovation and (2) consistent with the revised policies for acquiring weapons systems. GAO found that the new profit policy may have limited effect on incentivizing additional innovation because the policy has limited reach during research and development and it does not provide adequate guidance on when to apply the incentive. The policy may not reinforce DOD's emphasis on technology maturity in its guidance on the system acquisition process."

A letter report issued by the General Accounting Office with an abstract that begins "This report reviews the Department of Justice's fiscal year 2000 performance report and fiscal year 2002 performance plan required by the Government Performance and Results Act of 1993 and assesses Justice's progress in achieving selected key outcomes that were identified as important mission areas. Justice's overall progress toward achieving the key outcomes was difficult to ascertain because generally the performance report lacked fiscal year 2000 performance targets to measure success and lacked clear linkage between performance measures and outcomes. Justice did not set fiscal year 2000 performance targets for some measures because the measures were new, and for some measures Justice believes that setting performance targets could cause the public to perceive law enforcement as engaging in "bounty hunting" or pursuing arbitrary targets merely for the sake of meeting particular goals. Justice's strategies varied in the extent to which they included sufficient information to inform decisionmakers about initiatives to achieve these outcomes. GAO notes opportunities for Justice to improve the usefulness of its reports and plans."

Testimony issued by the General Accounting Office with an abstract that begins "In fiscal year 2000, Medicare made more than $200 billion in payments to hundreds of thousands of health care providers who served nearly 40 million beneficiaries. Because of the program's vast size and complexity, GAO has included Medicare on its list of government areas at high risk for waste, fraud, abuse, and mismanagement. GAO first included Medicare on that list in 1990, and it remains there today. GAO has continually reported on the efforts of the Health Care Financing Administration -- recently renamed the Centers for Medicare and Medicaid Services (CMS) -- to safeguard Medicare payments and streamline operations. CMS relies on its claims administration contractors to run Medicare. As these contractors have become more aggressive in identifying and pursuing inappropriate payments, providers have expressed concern that Medicare has become to complex and difficult to navigate. CMS's oversight of its contractors has historically been weak. In the last two years, however, CMS has made substantial progress. GAO has identified several areas in which CMS still need improvement, especially in ensuring that contractors provide accurate, complete, and timely information to providers on Medicare billing rules and coverage policies."