Guidance issued by the General Accounting Office with an abstract that begins "This is one in a series or reports designed to help federal agencies improve or maintain effective internal control, financial management systems, and financial reporting. GAO discusses the status of the 13 remaining standards in Title 2, "Accounting," of the GAO Policy and Procedures Manual for Guidance of Federal Agencies in light of the most recent compendium of Federal Accounting Standards Advisory Board (FASAB) standards and guidance. GAO either (1) reprinted the standards that remain in effect, along with any updated citations to relevant guidance, or (2) provided the citation of current guidance replacing that standard."

Testimony issued by the General Accounting Office with an abstract that begins "The Balanced Budget Act of 1997 required Medicare to change its payment system for ambulance services. In response, the Health Care Financing Administration (HCFA), now called the Centers for Medicare and Medicaid Services (CMS), proposed a fee schedule to standardize payments across provider types on the basis of national rates for particular services. Under the act, the fee schedule was to have applied to ambulance services furnished on or after January 1, 2000. HCFA published a proposed rule in September 2000 and has received public comment, but it has not yet issued a final rule. This testimony discusses the unique concerns of rural ambulance providers and the likely effects of the proposed fee schedule on these providers. Many rural ambulance providers face a set of unique challenges in implementing an appropriate payment policy. Rural providers--particularly those serving large geographic areas with low population density--tend to have high per-trip costs compared with urban and suburban providers. The proposed Medicare fee schedule does not sufficiently distinguish the providers serving beneficiaries in the most isolated rural areas and may not appropriately account for the higher costs of low-volume providers."

A letter report issued by the General Accounting Office with an abstract that begins "Financial relationships between individual investigators or their research institutions and private industry have yielded significant results, including treatments for such diseases as AIDS and strokes. However, some collaborations have raised concerns that the focus on financial reward might compromise the integrity of the research and the safety of human research subjects. GAO reviewed five universities with broad policies and procedures on financial conflicts of interest. All five had difficulty providing basic data on individual investigators' financial conflicts of interest in clinical research involving human subjects. The universities acknowledged a need for better coordination of information on investigators' financial relationships, and several universities were developing ways to do so. Policies and procedures at the five universities addressed financial conflicts of interest affecting institutions, including technology transfer activities and financial relationships with small start-up companies that market products developed by the universities. The Department of Health and Human Services has had limited success in promoting the integrity of biomedical research and protecting human subjects. HHS has taken steps to improve its oversight and monitoring and has drafted guidance on financial conflicts of interest, but this guidance does not …

A statement of record 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 efforts to combat terrorism, federal 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. This testimony summarizes a September 2001 report (GAO-01-915)."

Testimony issued by the General Accounting Office with an abstract that begins "A 1995 Presidential Decision Directive gave the highest priority to developing the capabilities to detect, prevent, defeat, and manage the consequences of a nuclear, biological, or chemical attack. In addition, the former Secretary of Defense emphasized at his 1997 confirmation hearing the threat that U.S. forces abroad face from chemical and biological weapons. The Office of the Secretary of Defense, the joint staff, and the armed services play distinct but interrelated roles in ensuring medical readiness. Defense planning is led by the Office of the Secretary of Defense, which sets policy and develops defense planning guidance. On the basis of this guidance, the Joint Chiefs issue a biannual Joint Strategic Capabilities Plan for the nation's unified combat commands. These commands are responsible for fighting and winning wars within a particular area, usually defined by geographical boundaries. The commanders-in-chief develop war plans and requirements that specify the combat troops and support that will be needed to meet the threat and mission assigned by the Capabilities Plan. The services, in turn, train and equip the forces, including medical personnel, to meet the needs of the commanders-in-chief. So far, neither DOD …

Correspondence issued by the General Accounting Office with an abstract that begins "In July 2000, the Department of Defense published a proposed revision of its guidelines for developing profit objectives used in contract negotiations. The existing profit policy guidelines address investment in facilities and equipment, performance risk, and contract type risk. For each profit factor, the contracting officer determines an appropriate value and applies it against a specified base to develop the profit objectives. The proposed revision would make the following changes to the profit guidelines: (1) include a fourth element--cost efficiency, that would allow the contracting officer to reward cost reduction efforts; (2) eliminate profit on investment in buildings and reduce the amount of profit derived from equipment investment; (3) increase the amount of profit based on performance risk; and (4) add general and administrative expenses to the cost base used to compute profit for performance risk, contract type risk, and cost efficiency. The decrease in profit for investment in facilities would be offset by the increased profit derived from performance risk and the inclusion of general and administrative expenses."

Testimony issued by the General Accounting Office with an abstract that begins "Federal agencies rely extensively on computer systems and electronic data to support their missions. The security of these systems is essential to avoiding disruptions in critical operations and to prevent data tampering, fraud, and inappropriate disclosure of sensitive information. GAO analyzed information security audits and evaluations at 24 major federal departments and agencies since July 2000. This testimony summarizes (1) the pervasive weaknesses that led GAO to begin reporting information security as a government-wide high-risk issue in 1997, (2) the serious risks that these weaknesses pose at selected agencies and common weaknesses that agencies need to address to improve their information security programs, and (3) the importance of establishing strong agency-wide security management programs and developing a comprehensive government-wide strategy for improvement."

Testimony issued by the General Accounting Office with an abstract that begins "Federal agencies spend billions of tax dollars each year to buy services, from clerical support to information technology expertise to facilities management. Agency service procurements are not always as efficient as they could be. Too often agencies are not clearly defining their requirements, fully considering alternative solutions, performing vigorous price analyses, or adequately overseeing contractor performance. Furthermore, agencies do not always have enough people with the right skills to manage service contracts. Congress is considering a package of proposals to improve the government's acquisition of services by (1) strengthening management oversight of services acquisitions, (2) improving the acquisition workforce, and (3) moving toward a performance-based contracting environment."

A letter report issued by the General Accounting Office with an abstract that begins "The U.S. Customs Service and the Immigration and Naturalization Service (INS) use different provisions to calculate pay for officers. Fundamental differences in how work is scheduled and how hours are counted also result in pay differences. For overtime, Sunday, and holiday work, Customs officers are generally paid for hours worked, whereas INS officers are often paid on the basis of minimum periods of time worked. Night pay is also fundamentally different. Foreign language awards and the inclusion of overtime pay in calculating retirement benefits are other examples of pay provisions that apply to Customs officers but not to INS officers. Because Customs and INS schedule work differently, it is difficult to compare the two systems and to analyze the effects of differences on officers' pay."

A letter report issued by the General Accounting Office with an abstract that begins "Although the current economic situation and the challenges of combating terrorism will cause federal deficits in the short term, the budget may again return to surpluses. Surpluses will be needed in the future to prepare for the retirement and health care needs of the baby boom era. GAO studied five nations--Australia, New Zealand, Norway, Sweden, and the United Kingdom-- whose recent experiences with debt management in times of surpluses might be relevant to the United States. The countries GAO studied experienced both budget surpluses and deficits from 1988 through 2000. Recent budget surpluses contributed to falling public debt levels in absolute terms and as a share of the economy in these countries. Whether government debt is increasing or decreasing, debt managers' objectives are (1) to ensure that the government's financing needs are met, (2) to minimize the government's cost of financing, (3) to promote efficient markets, and (4) to keep risk at an acceptable level. However, tradeoffs among these objectives are not always compatible. During budget deficits, a primary consideration is making government securities more attractive to potential investors. On the other hand, periods of surpluses …

Correspondence issued by the General Accounting Office with an abstract that begins "Because the military's weapon systems, particularly communication systems, have not been sufficiently interoperable, the services have experienced difficulty in operations ranging from the Gulf War to Kosovo. In Joint Vision 2020, a strategic statement on the transformation efforts of U.S. military forces, the Chairman of the Joint Chief of Staff recognizes that a joint force is essential to operational success and envisions an interoperable joint force with technologically advanced warfighting capabilities able to dominate any adversary by 2020. This vision also emphasizes the importance of experimenting with new joint warfighting concepts. The Joint Requirements Oversight Council plays a key role in advancing the joint warfighting capabilities of U.S. forces in support of Joint Vision 2020. The Council oversees the joint requirements process by assessing and approving the services' joint requirements and deficiencies. The Council also reviews and approves plans for correcting those deficiencies. Finally, the Council ensures interoperability and that the services have linked their capabilities to Joint Vision 2020. The Chairman of the Joint Requirements Oversight Council and others have identified and begun to address several weaknesses. Because these efforts are in the early stages, it is …

A letter report issued by the General Accounting Office with an abstract that begins "Federal law states that not more than 50 percent of annual depot maintenance funding can be used for work by private sector contractors. In an earlier report, GAO could not determine whether the Department of Defense (DOD) had complied with the 50-percent limitation. More recent GAO testimony highlighted continuing and pervasive weaknesses in DOD's financial management systems, operations, and controls that impair its ability to accurately accumulate and report reliable budget execution and cost data. This report found that the military had mixed results complying with the 50-50 requirement for private sector workloads in fiscal years 1999 and 2000. The projections of the Army, Air Force, and Navy in DOD's report for fiscal years 2001 through 2005 are neither accurate nor reasonable estimates of the future allocations of public and private sector workloads. The services placed much less emphasis on the future-years data and reports. The reported projections use incorrect data and questionable assumptions and are inconsistent with existing budgets and management plans. DOD's report should be viewed with caution because it does not provide the best data available to DOD decisionmakers and congressional overseers, and …

Correspondence issued by the General Accounting Office with an abstract that begins "This report reviews whether the DC government had the authority to use $18 million from the Financial Responsibility and Management Assistance Authority for severance payments during fiscal year 2000. GAO concludes that the District lacked the authority to use the $18 million in Section 157 funding for the fiscal year 2000 workforce reduction. District officials told GAO that they believed that they had the Financial Authority's approval to use 157 funding and, consequently, spent $14.3 million during fiscal year 2000 on workforce reduction activities. However, the District could not document that the Financial Authority had certified compliance with the requirements of Section 157 to authorize the use of the funds. The Financial Authority maintains that it did not approve the use of the funds by the District and had denied in writing the District's request for reimbursement for severance payments. The District accounted for the workforce reduction costs during fiscal year 2000 as if it had access to the Section 157 funding. The District concluded that, had the Section 157 funding been unavailable, one agency would have ended fiscal year 2000 with an operating deficit and two agencies …

Correspondence issued by the General Accounting Office with an abstract that begins "The Washington Convention Center Authority will build, maintain, and operate the new convention center as well as maintain and operate the existing convention center. This report reviews (1) the status of the new convention center project as of July 2001 and (2) the guaranteed maximum price (GMP) agreement. The revised GMP has not yet been set because WCCA and the construction manager haven't agreed on the project schedule and the estimated cost of pending charges. The GMP--which covers most of the hard costs of actual construction, such as masonry, carpentry, and metals, but excludes soft-cost items--is based on a set of agreed-upon assumptions about work quantities and unit costs of performing such work. The GMP amount of $500.6 million will be adjusted as the project progresses. As of July 2001, WCAA's monthly report estimates total construction costs at $778.2 million, including a $14.6 million contingency amount as a cushion against unforeseen future increases. This represents a nine-percent increase over the original estimate of $714 million. WCCA included a project contingency of $30.5 million in the September 1998 cost estimate. The estimated project cost of $778.2 million as of …

Testimony issued by the General Accounting Office with an abstract that begins "Contaminated soil or water resulting from leaks at underground storage tanks can pose serious health risks. In 1984, Congress created the Underground Storage Tank (UST) program to protect the public from potential leaks. Under the program, the Environmental Protection Agency required tank owners to install new leak detection equipment and new spill-, overfill-, and corrosion-prevention equipment. GAO found that about 1.5 million tanks have been permanently closed since the program was created, but more than half of the states do not inspect all of their tanks often enough to meet the minimum rate recommended by EPA--at least once every three years. States reported that even tanks with the required leak prevention and detection equipment continue to leak, although the full extent of the problem is unknown."

A chapter report issued by the General Accounting Office with an abstract that begins "Since the end of the Cold War, the United States and its European allies are using smaller militaries, disbursing more development assistance, and increasing their reliance on multilateral organizations to provide for European security. Despite reductions in force levels and budgets, U.S. and European military forces have been actively engaged in peacekeeping and other security-enhancing activities in the region. The United States and its European allies have contributed to stability in the Balkans through various military and financial means. The Balkans operations have highlighted numerous shortfalls in the military capabilities of European allies, but competing budgetary priorities may limit their ability to remedy them before the end of the decade. Defense expenditures are expected to remain relatively flat in constant 2000 dollars over the next four to five years for most European allies, placing major defense initiatives sponsored by NATO and the European Union in jeopardy."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit report covering the financial statements of the Jewish War Veterans, U.S.A., National Memorial, Incorporated, for fiscal year 2000. GAO found no reportable instances of noncompliance. The audit report included the auditors' opinion 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 Order or the World Wars for fiscal year 2000. GAO found no reportable instances of noncompliance. The audit reports included the auditors' opinions that the financial statements of the corporation were presented fairly on a modified cash basis of accounting."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed the audit report covering the financial statements of the National Federation of Music Clubs for fiscal year 2000. The audit report included the auditors' opinions that the financial statements of the corporation were presented fairly in accordance with generally accepted accounting principles. GAO found no reportable 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 Pearl Harbor Survivors Association for fiscal year 2000. GAO found no reportable instances of noncompliance. The audit report included the auditor's opinion that, without exception, the financial statements of the corporation were presented fairly on a modified cash basis of accounting."

Correspondence issued by the General Accounting Office with an abstract that begins "GAO reviewed an audit report covering the financial statement of the Polish Legion of American Veterans, U.S.A., for fiscal year 2000. GAO found no reportable instances of noncompliance. The audit report included the auditors' opinion 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 "This report provides information on improper payments that federal agencies reported in their fiscal year 2000 financial statements. GAO found that the amount of improper payments reported in agency financial statements has remained consistent at about $20 billion for the past three years. Even though these amounts are substantial, agency-specific audits and studies indicate the improper payment problem is much more widespread than disclosed in agency financial statement reports. The President's Management Agenda for Fiscal Year 2002 has made the reduction of improper payments a priority. The Administration has taken steps to require federal agencies to identify erroneous payments and to discuss planned actions to better manage these payments."

A letter report issued by the General Accounting Office with an abstract that begins "Maintaining a capable, appropriately sized submarine force is an integral part of the United States' military strategy. Since the end of the Cold War, significant changes in the strategic environment have led the Department of Defense (DOD) to reduce the size of its submarine force. DOD developed the following four options to a carry out the reduction: (1) refueling four SSN-688 attack submarines; (2) refueling four SSN-688 attack submarines and, upon reaching the end of their operational life after 10-12 years, replacing them with four new Virginia-class attack submarines; (3) refueling and converting four Trident SSBNs to SSGNs; and (4) refueling four SSN-688 attack submarines and converting two Trident SSBNs to SSGNs. All four options seek to reverse a projected decline in attack submarine force levels below the minimum requirement of 55, but they vary considerably in terms of the number of years they allow DOD to meet this goal. Both the refueled SSN-688s and SSGNs would be capable of various peacetime and wartime missions, but they differ in the extent to which they can perform them. Converting four Trident ballistic missile submarines to SSGNs is …

Testimony issued by the General Accounting Office with an abstract that begins "This testimony focuses on the proposed Freedom to Manage legislation. First, in view of changing priorities and the need to improve the efficiency and effectiveness of government operations, a comprehensive review, reassessment, and reprioritization of what government does and how it conducts business is clearly warranted. Second, the Freedom to Manage proposal was motivated, in part, by a desire to eliminate wasteful, redundant, and inefficient reporting and other mandates. GAO has previously recommended a comprehensive and government-wide review in this area. However, the Freedom to Manage Act is very broad and contains several provisions that would significantly limit traditional congressional debate and involvement. Although Congress has adopted "fast track" approaches for specific areas in the past, this proposal would alter Congress' relative influence in addressing a broad range of federal management issues. Essentially, the act would limit Congress' ability to garner valuable input through hearings and other means. By requiring an expedited vote on presidential proposals without amendments, the act would change the role of Congress in the legislative process. Given the need to position our government to address new challenges and heightened public expectations, both Congress and …