A letter report issued by the General Accounting Office with an abstract that begins "Since the 1920s, the Army's Ceremonial Rifle Program has lent obsolete or condemned rifles to veterans' organizations for funerals and other ceremonies. The M-1 is the only rifle currently authorized for this purpose. The National Defense Authorization Act for Fiscal Year 2000 authorized the Secretary of the Army to conditionally loan or donate M-1 rifles and required that GAO review and report on the Secretary's exercise of authority under the amended law. The Army issued an interim change to its regulation governing the Ceremonial Rifle Program that partially addresses the Secretary's authority under the law. This interim change addresses (1) the number of rifles that may be provided and (2) the security, safety, and accountability over provided rifles. From the time the law was amended in October 1999 through March 2001, the Army reported providing 232 organizations with 2,054 rifles and had 937 open requests for 8,395 rifles. The Army estimates that it has provided more than 300,000 rifles under the Ceremonial Rifle Program since the program's inception."

A letter report issued by the General Accounting Office with an abstract that begins "The transition to quieter aircraft required by the Airport Noise and Capacity Act of 1990 was expected to benefit communities, airports, and airlines. In turn, the transition was expected to reduce community opposition to airport operations and expansion and to reduce the demand for funds provided for noise abatement through federal grants and user charges. The results expected from the transition to quieter aircraft were partially realized. The transition occurred as planned and considerably reduced the population exposed to noise levels incompatible with residential living. Nevertheless, noise concerns remain a barrier to airport expansion, and the demand for federally authorized support for noise abatement efforts has continued. GAO identified two key issues for review by the aviation community. First, even though fewer people are exposed to aircraft noise, according to a survey in 1999-2000, more than half of the noise complaints came from people living in areas exposed to noise levels that FAA considers compatible with residential living. Second, if people are allowed to move to areas close to an airport, they may later find themselves exposed to noise levels that FAA considers incompatible with residential …

A letter report issued by the General Accounting Office with an abstract that begins "Unlike public schools, the schools run by the Bureau of Indian Affairs (BIA) and the Department of Defense (DOD) depend almost entirely on federal funds. Although the two school systems are similar in that regard, their histories and settings are very different. The performance of many BIA students on standardized tests and other academic measures is far below that of public school students. BIA students also score considerably below the national average on college admission tests. Nearly all BIA teachers are fully certified for the subjects or grade levels they teach, although BIA officials said that some schools have great difficulty recruiting and retaining qualified staff. BIA schools report that they have greater access to computers and the Internet than do public schools, but the technical support available to maintain the computers and help teachers use technology in the classroom is more limited. Many school administrators reported problems with school facilities. Estimated per-pupil expenditures at BIA schools varied widely by school type, such as day or boarding school, but are generally higher than for public schools nationally. The academic performance of DOD students generally exceeds that …

A letter report issued by the General Accounting Office with an abstract that begins "Federal research and preparedness activities related to bioterrorism center on detection; the development of vaccines, antibiotics, and antivirals; and the development of performance standards for emergency response equipment. Preparedness activities include (1) increasing federal, state, and local response capabilities; (2) developing response teams; (3) increasing the availability of medical treatments; (4) participating in and sponsoring exercises; (5) aiding victims; and (6) providing support at special events, such as presidential inaugurations and Olympic games. To coordinate their activities to combat terrorism, federal departments and agencies are developing interagency response plans, participating in various interagency work groups, and entering into formal agreements with other agencies to share resources and capabilities. However, coordination of federal terrorism research, preparedness, and response programs is fragmented, raising concerns about the ability of states and localities to respond to a bioterrorist attack. These concerns include insufficient state and local planning and a lack of hospital participation in training on terrorism and emergency response planning."

A letter report issued by the General Accounting Office with an abstract that begins "By the mid 1990s, most of the District of Columbia's public schools were more than 50 years old and in poor condition. Deferred maintenance had led to a host of safety problems, from fire code violations to leaky roofs. GAO found that the D.C. school system mismanaged a contract with the Washington Gas Light Company. GAO found the use of the gas contract to obtain school renovation services, including painting, carpeting, plumbing, and electrical work, was outside the scope of the contract. In addition, in carrying out the renovation work, the D.C. school system failed to adhere to controls and procedures intended to (1) ensure that the District obtained the best price and services and (2) maintain a proper relationship between the contractors and the D.C. government. These problems raise serious doubts about whether the District obtained fair and reasonable prices on the renovations and whether the school system should continue the gas utility contract."

A letter report issued by the General Accounting Office with an abstract that begins "This report lists 48 reporting requirements enacted by Congress on the District of Columbia (DC) government. The District of Columbia Appropriations Act for Fiscal Year 2001 and the Supplemental Appropriations Act for Fiscal Year 2001 contain 24 of these requirements. The other 24 originate from prior appropriation acts for DC or from other federal statutes. Of the 48 requirements, 23 provide information on financial management of DC funds and programs. The remaining 25 report on the status of various DC programs or operations. The responsibility for responding to most of these reporting requirements is dispersed among the Mayor, the DC Council, and the DC Chief Financial Officer."

A letter report issued by the General Accounting Office with an abstract that begins "The Government Paperwork Elimination Act requires federal agencies to give the public the option by October 2003 of submitting, maintaining, and disclosing required information in electronic rather than paper format. The Office of Management and Budget (OMB) is responsible for overseeing executive branch efforts to comply with the act. Although the October 2000 implementation plans contained much useful information, GAO also found omissions and inconsistencies. Electronic options for many activities are not planned until 2003 at the earliest, and electronic options for other activities are not scheduled at all. As a result, many agencies are at risk of failing the meet the act's deadlines. The October 2000 implementation plans did not provide enough information on agencies' strategic actions, such as prioritizing conversions on the basis of achievability and net benefit, that would minimize the risk of noncompliance. Given these shortcomings, OMB's oversight efforts will be challenging. Without better information, agency progress in achieving the act's goals cannot be accurately assessed."

A letter report issued by the General Accounting Office with an abstract that begins "Under the Department of Agriculture's (USDA) Marketing Assistance Loan Program, the federal government accepts harvested crops as collateral for interest-bearing loans (marketing assistance loans) that are typically due in nine months. When market prices drop below the loan rate (the loan price per pound or bushel), the government allows farmers to repay the loan at a lower rate and retain ownership of their commodity for eventual sale. The difference between the loan rate and the lower repayment rate is called the "marketing loan gain." Conversely, farmers who do not have marketing assistance loans can also receive a benefit when prices are low called a "loan deficiency payment." The loan deficiency payment is equal to the marketing loan gain that the farmer would have received if he or she had a loan. Farmers may choose to obtain either a marketing loan gain or a loan deficiency payment--both of which are known as the marketing loan benefit. The increase in the payment limit and the availability of commodity certificates had only modest effects on the $15 billion in marketing assistance loan payments provided for crop year 1999 and …

A letter report issued by the General Accounting Office with an abstract that begins "This report presents the results of GAO audits of expenditures reported by six offices of independent counsel for fiscal year 2001. In its audits, GAO found (1) the statements of expenditures presented for the offices of independent counsel David M. Barrett, Carol Elder Bruce, Ralph I. Lancaster, Daniel S. Pearson, Robert W. Ray, and Donald C. Smaltz, and special counsel John C. Danforth, respectively are presented fairly in conformity with the basis of accounting described in note 1 of each counsel's statement, which is principally the cash basis, a comprehensive basis of accounting other than U.S. generally accepted accounting principles; (2) no material weaknesses in internal control over financial reporting and compliance with laws and regulations; and (3) no reportable noncompliance with laws and regulations GAO tested."

A letter report issued by the General Accounting Office with an abstract that begins "Internal control weaknesses in the Department of Education's payment processes make the department vulnerable to improper payments. GAO focused on three types of disbursements made from May 1998 through September 2000--grants and loans totaling $181.4 billion, third party drafts totaling $55 million, and government purchase card transactions totaling $22 million. In the grant and loan area, edit checks and other key controls were missing from Education's payment system. For example, Education's student aid application processing system lacked an automated edit check that would identify students who were much older than expected. Several internal control weaknesses made the third party draft payment process susceptible to improper payments. GAO found 268 instances involving $8.9 million in which Education employees circumvented a system control designed to avoid duplicate payments. While analyzing Education's use of government purchase cards, GAO also found several internal control weaknesses, including serious deficiencies in the department's process for reviewing and approving purchase card transactions. More than one-third of the 903 purchase cardholders' monthly statements reviewed lacked proper review and approval for payment. GAO summarized this report in testimony before Congress; see Financial Management: Poor Internal …

A letter report issued by the General Accounting Office with an abstract that begins "For fiscal years 1977 through 2000, the federal government paid about $370 million to support former presidents and their families. As of June 2001, the offices of the five living former presidents ranged in size from 3,300 to 5,900 square feet. The General Services Administration (GSA) is authorized to provide each former president with suitable office space appropriately furnished and equipped at a location specified by the former president. The law does not, however, provide any guidance on the appropriate amount of space that is to be provided. For fiscal year 2000, GSA's rent charged to former President Bush was $144,000, former President Carter $89,283, former President Ford $105,099, and former President Reagan $256,671. Former President Clinton's office was not finished until late August 2001. His annual rent payment to GSA for fiscal year 2002 is estimated to be about $354,000. The federal government is paying the entire lease cost for all of the former presidents' offices, according to GSA officials. The rental rates GSA has paid for former presidents' offices are generally comparable to rents paid for similar properties in the same areas. The Carter …

A letter report issued by the General Accounting Office with an abstract that begins "One in eight Americans are entitled to unclaimed and abandoned assets, according to the National Association of Unclaimed Property Administrators. These unclaimed and abandoned assets include savings and checking accounts, securities, paychecks, insurance settlements, and utility and rental deposits. Most of this money is unclaimed because the owner moved and simply forgot about the account, changed his or her name, or died. After a period of dormancy, the funds are turned over to state unclaimed property offices. To protect investors, the Securities and Exchange Commission (SEC) adopted a rule in 1997 requiring transfer agents to search for lost security holders, maintain written procedures for searching for lost security holders, and annually report to SEC on the accounts of lost security holders. However, the rule excluded the broker-dealers that are involved in the buying and selling of securities and that hold the vast majority of owners' assets. Legislation was introduced in Congress in 2000 that would have expanded the SEC rule to cover broker-dealers. GAO surveyed broker-dealer and transfer agents survey respondents and found that the number of lost accounts was about two percent of total accounts. …

A letter report issued by the General Accounting Office with an abstract that begins "The Balanced Budget Act of 1997 (BBA) established the Medicare+Choice (M+C) program to expand health plan choices. BBA permitted Medicare participation by preferred provider organizations, provider-sponsored organizations, and insurers offering private fee-for-service plans or medical savings accounts. It also encouraged the wider availability of health maintenance organizations, which have long been an option for many beneficiaries. To help beneficiaries understand and consider all of their Medicare options, the National Medicare Education Program offers a toll-free help line, informational mailings to beneficiaries, an Internet site, and educational and publicity campaigns. During fiscal years 1998 through 2000, the Health Care Financing Administration (HCFA) spent an average of $107.8 million on the program annually. Most of the money came from user fees collected from M+C plans. Reaction to the program has generally been positive among beneficiaries and beneficiary advocacy groups, but representatives of M+C plans offered a mixed assessment. Program activities have increased the information available to beneficiaries on Medicare, the M+C program, and specific health plans. However, the extent to which the program has motivated beneficiaries to actively weigh their health plan options is unknown."

A letter report issued by the General Accounting Office with an abstract that begins "The Department of Energy (DOE) created the Laboratory Directed Research and Development (LDRD) program in fiscal year 1992. This program formalized a long-standing policy of giving its multi-program national laboratories discretion to conduct self-initiated, independent research and development (R&D). Since then, DOE's multi-program national laboratories have spent more than $2 billion on LDRD projects. DOE's three largest multi-program national laboratories account for nearly three-quarters of laboratory-wide LDRD spending. All LDRD projects GAO reviewed at the five laboratories met DOE's guidelines for selection. In addition, each of the five laboratories created the internal controls necessary to reasonably ensure compliance with DOE's guidelines. Each laboratory issues annual LDRD reports that contain performance indicators, such as the numbers of patents obtained, publications, copyrights, awards, and relevance of the research to DOE's missions. The reports present performance information in various formats, making it difficult to focus on the most relevant performance information."

A letter report issued by the General Accounting Office with an abstract that begins "The National Transportation Safety Board (NTSB) promotes transportation safety through accident investigations, special studies, and recommendations intended to prevent accidents. Separate reviews at NTSB by PricewaterhouseCoopers, LLP (PwC) and GAO found significant shortcomings in the design and operation of NTSB's internal controls during 1999 and 2000. These deficiencies indicated insufficient or ineffective management attention to establishing and maintaining an effective system of internal control over financial management operations. The resulting weaknesses exposed the agency to waste, fraud, and mismanagement. Some basic controls were not always clearly and consistently incorporated into NTSB policies and procedures, and, in some cases, the written policies were ambiguous and contributed to possible improper transactions. Furthermore, NTSB's payment review and approval process--the last and best opportunity to detect and address inadequate documentation and other policy violations prior to payment--was often ineffective. Separate reviews of different aspects of NTSB's 1999 and 2000 financial activities and related internal controls, done by PwC at NTSB's request, documented various internal control weaknesses, including problems with the completeness and clarity of policies, the recording and review of transactions, and the tracking and reporting its use of funds."

A letter report issued by the General Accounting Office with an abstract that begins "Pediatric patients in need of an organ transplant face a shortage of donated organs. The number of pediatric organ donors has remained relatively constant from 1991 to 2000, despite a drop in potential donors. The number of adult donors rose 45 percent during the same period, in large part because donor eligibility criteria have been expanded to include older donors and donors with diseases that have been prohibited in the past. Organ waiting lists for pediatric patients have more than doubled. Compared to adults, however, children account for a small number of transplant candidates. The degree to which pediatric organs are transplanted into adults varies by organ. Pediatric patients appear to be faring as well as or better than adult patients, both while on the waiting list and after transplantation. Allocation policies for kidneys, livers, and hearts provide several protections for children awaiting transplants. The priority a child receives takes into account differences between children and adults in the progression and treatment of end stage organ disease, with the policies differing for each organ."

A letter report issued by the General Accounting Office with an abstract that begins "In a May 2000 report on the performance of the Department of Transportation's Office of Pipeline Safety (OPS), GAO found that the number of pipeline accidents rose four percent annually from 1989 to 1998--from 190 in 1989 to 280 in 1998. GAO also found that OPS did not implement 22 statutory requirements and 39 recommendations made by the National Transportation Safety Board. Since GAO's May report, OPS has fully implemented six of the 22 statutory requirements. However, 11 other requirements--including some that are significant and long-standing--have not been fully implemented. The agency does not plan to report on abandoned underwater pipeline facilities--a remaining open requirement--because it believes that insufficient data exists to conduct the study. The Safety Board is encouraged by OPS' recent efforts to improve its responsiveness, but the Board remains concerned about the amount of time OPS has taken to implement recommendations. OPS has the lowest rate of any transportation agency in implementing the Board's recommendations."

Testimony issued by the General Accounting Office with an abstract that begins "Federal agencies, and other public and private groups, rely extensively on computer systems and electronic data. The security of these systems and data is essential to avoiding disruptions in critical operations and preventing data tampering, fraud, and inappropriate disclosure of sensitive information. However, federal computer systems contain weaknesses that continue to put critical operations and assets at risk. In particular, deficiencies exist in entitywide security programs that are critical to agencies' success in ensuring that risks are understood and effective controls are implemented. Many efforts have been undertaken to implement the nationally critical infrastructure protection strategy outlined in Presidential Decision Directive (PDD) 63. However, progress in key areas has been limited. Although outreach efforts by many federal entities to establish cooperative relationships with and among private and other nonfederal entities have raised awareness and prompted information sharing, efforts to perform substantive analyses of sector-wide and cross-sector interdependencies and related vulnerabilities have been limited. A major impediment to implementing the strategy outlined in PDD 63 is the lack of a national plan that clearly spells out the roles and responsibilities of federal and nonfederal entities and defines interim objectives."

Correspondence issued by the General Accounting Office with an abstract that begins "The current federal peanut program, administered by the U.S. Department of Agriculture, is designed to support producers' incomes while ensuring an ample supply of domestically produced peanuts. To achieve these goals, the program controls the domestic supply of peanuts and guarantees producers a minimum price for their crops. This price substantially exceeds the price for peanuts in world markets. The program uses two mechanisms to control the domestic supply of peanuts--a national quota on the number of pounds that can be sold for edible consumption domestically and import restrictions. Only producers holding quota, either through ownership or rental of farmland, may sell their peanuts domestically as "quota" peanuts. Generally, all other production, referred to as "additional" peanuts, must be exported or crushed for oil or meal. The program protects producers' incomes through a two-tiered system that sets minimum support prices for quota and for additional peanuts. GAO and others have criticized the program because it provides substantial benefits to a relatively small number of producers who hold most of the quota, generally restricts nonquota holders from producing peanuts for the U.S. domestic market, and increases consumers' cost. In …

Testimony issued by the General Accounting Office with an abstract that begins "A safe and secure civil aviation system is critical to the nation's overall security, physical infrastructure, and economy. Billions of dollars and countless programs and policies have gone into developing such a system. Although many of the specific factors contributing to the terrible events of September 11 are still unclear, it is apparent that our aviation security system is plagued by serious weaknesses that can have devastating consequences. Last year, as part of an undercover investigation, GAO special agents used fake law enforcement badges and credentials to gain access to secure areas at two airports. They were also issued tickets and boarding passes, and could have carried weapons, explosives, or other dangerous items onto the aircraft. GAO tests of airport screeners also found major shortcomings in their ability to detect dangerous items hidden on passengers or in carry-on luggage. These weaknesses have raised questions about the need for alternative approaches. In assessing alternatives, five outcomes should be considered: improving screener performance, establishing accountability, ensuring cooperation among stakeholders, moving people efficiently, and minimizing legal and liability issues."

A letter report issued by the General Accounting Office with an abstract that begins "Intellectual property--which includes federally granted patents, trademarks, and copyrights--is often owned or used by state governmental entities, such as public institutions of higher education. Until recently, state entities that made unauthorized use of, or "infringed," the intellectual property of others were subject to lawsuits in federal court. In 1999, however, the U.S. Supreme Court held that states were not subject to such suits, striking down a federal law that would have taken away a state's right to claim immunity under the Eleventh Amendment of the U.S. Constitution when sued in federal court for patent infringement. Some intellectual property owners are concerned that they no longer have adequate remedies if a state commits infringement. Although the precise number is difficult to determine, few accusations of intellectual property infringement appear to have been made against the states through either lawsuits or matters handled out of court. GAO identified 58 lawsuits that had been active since January 1985 in either a state or federal court in which a state was a defendant in an action involving the unauthorized use of intellectual property. Intellectual property owners appear to have few …

Testimony issued by the General Accounting Office with an abstract that begins "Complete, accurate, and timely communication of program information is necessary to help Medicare providers comply with program requirements and appropriately bill for their services. Information provided to physicians about billing and payment policies is often incomplete, confusing, out of date, or even incorrect. GAO found that the rules governing Centers for Medicare and Medicaid Services (CMS) contracts with its claims processors lack incentives for efficient operations. Medicare contractors are chosen without full and open competition from among health insurance companies, rather from a broad universe of potential qualified entities, and CMS almost always uses cost-only contracts, which pay contractors for costs incurred but generally do not offer any type of performance incentives. To improve Medicare contractors' provider communications, CMS must develop a more centralized and coordinated approach consistent with the provisions of the Medicare Regulatory and Contracting Reform Act (MRCRA) of 2001. MRCRA would require that CMS (1) centrally coordinate contractors' provider education activities, (2) establish communications performance standards, (3) appoint a Medicare Provider Ombudsman, and (4) create a demonstration program to offer technical assistance to small providers. MRCRA would also broaden CMS authority so that various types …

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed 24 agencies that are covered by the Chief Financial Officers (CFO) Act of 1990 to analyze trends in hiring patterns. Generally, GAO did not find any discernable patterns. More than half of the 24 agencies GAO reviewed reported career hiring increases of 10 percent or more between July and December 2000 compared to the same period in 1999. A similar number of agencies, although not necessarily the same ones, reported increases of 10 percent or more for 1999, compared to 1998. Although the percentage changes exceeded 10 percent for most agencies, the actual number of hires were often small. The total number of career and Senior Executive Service employees on board in each of the 24 CFO agencies remained relatively stable during the three-year period."

Testimony issued by the General Accounting Office with an abstract that begins "In the Olmstead case, the Supreme Court decided that states were violating title II of the Americans with Disabilities Act of 1990 (ADA) if they provided care to disabled people in institutional settings when they could be a appropriately served in a home or community-based setting. Considerable attention has focused on the decision's implications for Medicaid, the dominant public program supporting long-term care institutional, home, and community-based services. Although Medicaid spending for home and community-based service is growing, these are largely optional benefits that states may or may not choose to offer, and states vary widely in the degree to which they cover them. The implications of the Olmstead decision--in terms of the scope and the nature of states' obligation to provide home and community-based long-term care services--are still unfolding. Although the Supreme Court ruled that providing care in institutional settings may violate the ADA, it also recognized that there are limits to what states can do, given the available resources and the obligation to provide a range of services for disabled people. The decision left many open questions for states and lower courts to resolve. State programs …